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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Control mechanisms over a trustee... Posted by Ward-CA- on July 03, 2003 at 11:41 PM In Reply to: Re: Control mechanisms over a trustee... posted by jenv on July 01, 2003 at 1:52 AM : A backup deed won't undo an unauthorized transfer out of trust and it won't stop an unauthorized voluntary lien, which I assume are the primary concerns one has with respect to trustees. It also won't warn you in advance, which is what I thought you meant when you used the term "tripwire". So how do you accomplish that? : This might be absurdly complex, but you could have 2 trustees, one with an estate for years and one with a remainder interest. Then no single trustee could convey fee simple title; they would have to collude to convey fee simple title. Makes for killer asset protection, too. =-=-=-=-=-=-==- Jenv, An unauthorized transfer out of the trust would be stopped when the escrow company involved sent a payoff request to the beneficiary of a "friendly deed of trust" that was secured by the trust property. At that point the bene would inform the owner of the trust that she had received such an inquiry from the escrow company, thus tipping off the trust owner of the illicit actions of his rogue trustee. If the transfer was taking place via a "subject to" transaction where the existing lenders where not involved then the recorded Memorandum of Option would act as a cloud on the title and the optionee would be approached to remove it. Again, such an approach would trigger a phone call to the heretofore clueless trust owner. You're right, having two co-trustees is amping up the trust's complexity more than required. Follow Ups: Re: Control mechanisms over a trustee... jenv 1:44 AM, 07/04/03 (1) Don't give the "criminally inclined" that much credit... Ward-CA- 11:51 AM, 07/04/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : A backup deed won't undo an unauthorized transfer out of trust and it won't stop an unauthorized voluntary lien, which I assume are the primary concerns one has with respect to trustees. It also won't warn you in advance, which is what I thought you meant when you used the term "tripwire". So how do you accomplish that? : : This might be absurdly complex, but you could have 2 trustees, one with an estate for years and one with a remainder interest. Then no single trustee could convey fee simple title; they would have to collude to convey fee simple title. Makes for killer asset protection, too. : =-=-=-=-=-=-==- : Jenv, : An unauthorized transfer out of the trust would be stopped when the escrow company involved sent a payoff request to the beneficiary of a "friendly deed of trust" that was secured by the trust property. At that point the bene would inform the owner of the trust that she had received such an inquiry from the escrow company, thus tipping off the trust owner of the illicit actions of his rogue trustee. : If the transfer was taking place via a "subject to" transaction where the existing lenders where not involved then the recorded Memorandum of Option would act as a cloud on the title and the optionee would be approached to remove it. Again, such an approach would trigger a phone call to the heretofore clueless trust owner. : You're right, having two co-trustees is amping up the trust's complexity more than required. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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