Before transferring any real property into your living trust, it is extremely important that you check on several factors that could have a negative effect on the transfer. One of these factors is title insurance.
It is very important that you check with your title insurance company before you begin transferring any real property into your living trust. Some title insurance companies have what are called 'successor in interest' terms written into their policies. If the new trustee does not qualify under these terms, the company can terminate the policy. If this were the case, the trustee would need to purchase their own title insurance. Of course, this is made easier if you do not have a mortgage and you may do without this insurance. However, the bank or other lender, may require the purchase of a new policy which will add additional costs to the property transfer process.
If you are considering transferring your real property into a trust, you will need the help of a qualified and experienced attorney. Contact one of our professional Estate Planning Attorneys at the Law Offices of David A. Shapiro.
*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.