[WSBARP] Best practice - Conveying into new trust

[John McCrady]

>From a title insurance perspective, it probably doesn't matter what type of deed you use, provided the trust is a "Living Trust" created for estate planning purposes.
In the 2006 Owner's Policy the definition of "Insured" includes "...a trustee or beneficiary of a trust created by a written instrument established by the insured named in Schedule A for estate planning purposes."

In the Alta Homeowner's Policy the insured ("You") is defined:  (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; (4)  the beneficiaries of Your Trust upon Your death; or
Since these definitions are not dependent on continuation of warranty provisions a quit claim deed would not jeopardize coverage.

If the trust is not an estate planning trust, I would use a Statutory Warranty Deed and request an endorsement from the client's Title Insurer.

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

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of marc holmeslawgroup.com
Sent: Wednesday, February 20, 2019 8:52 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Best practice - Conveying into new trust

I've seen quit claim, bargain and sale, special warranty, and statutory warranty deeds used to  convey property into a trust and am trying to decide which to use and whether to ask the title company for an endorsement for the new "insured."

Any opinion on which is most appropriate form of deed and whether a title endorsement is even necessary.  I vaguely recall that this sort of conveyance won't disturb continuity of coverage under either an ALTA Standard or ALTA Homeowner's policy.



Marc Holmes, JD
Holmes Law Group PLLC
2303 W. Commodore Way, Suite 306
Seattle, WA 98199
marc at holmeslawgroup.com<mailto:marc at holmeslawgroup.com>
(206) 357-4224 (ofc)
(206) 849-0853 (cell)




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