We see a large number of properties that are vested in trusts simply because we experienced an increase in the number of properties purchased by trusts 10-15 years ago. A number of unique challenges are present for both sellers and purchasers when a trust is involved. The first thing to do when you know your client will be acting as trustee of a trust is to make certain that they are in possession of a full, signed copy of the trust. They don’t need to share it with you, but they will most likely need to share it with the title company. In those instances where the original trustor is still alive and the original trustee is still acting in their capacity as trustee, we may be able to utilize a copy of a Certification of Trust for title purposes. When any of the parties are deceased or the original trustee has been replaced with a Successor Trustee, we will need to see the full Trust Agreement. This allows us to establish any powers and restrictions of the trustee(s). If your client is not in possession of a full copy of the Trust Agreement, they should immediately check with the attorney who drafted the trust to get a copy from them. Lastly, make absolutely certain that your client intends to be in town on the date of closing so they can sign the documents for the transaction personally. As the trustee of a trust, the trustee cannot assign a Power of Attorney to someone because the “power” is derived from the trustor and it cannot be further assigned to a third party. |
