[WSBAPT] Deed to WA Trust Question

Thu Jun 13 08:50:53 PDT 2019

I've never understood the rationale behind using only a quitclaim deed for a personal revocable trust.  Mr. McCrady, what is the downside risk to simply using a SWD and just finessing the whole "loss of coverage" issue?

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of John McCrady
Sent: Wednesday, June 12, 2019 4:46 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Deed to WA Trust Question

A quit claim deed does often interfere; since a quit claim deed contains no warranties of title, and the owner's policy will continue coverage when the grantor has liability under a warranty of title, the quit claim deed will act to terminate the coverages of the Owner's Policy.
However, check his Owner's Policy; most recent title policies will have a provision extending the coverage to include the insured's living trust.  For instance, the Homeowner's Policy of Title Insurance provides under "Continuation of Coverage":

b.   This Policy also insures:

(1)  anyone who inherits Your Title because of Your death;

(2)  Your spouse who receives Your Title because of dissolution of Your marriage;

(3)  the trustee or successor trustee of Your  Trust or any Estate Planning Entity created for You to whom or to which You transfer Your Title after the Policy Date;............

John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98467
253-476-5721
j.mccrady at pstitle.com<mailto:j.mccrady at pstitle.com>

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Candace Wilkerson
Sent: Wednesday, June 12, 2019 4:15 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Deed to WA Trust Question

Hi Listmates:

I have a client who wants me to draft a deed to put his primary residence into his revocable WA trust.  I always do these as quit claim deeds, but he wants a statutory warranty deed into the trust (thinking it will avoid problems with the title company).  Has anyone dealt with this before?

Thanks,
Candace Wilkerson

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