[WSBARP] Best practice - Conveying into new trust

[John McCrady]

Yes I agree with you; use the Statutory Warranty Deed and leave that bridge un-burned.

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 Jeanne Dawes
Sent: Wednesday, February 20, 2019 10:28 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Best practice - Conveying into new trust

John,  I typically use a Statutory Warranty Deed for properties because typically I don't know whether they are insured, or when they were insured, or under what ALTA policy they were insured (a lot of times is may be under a much older policy).   My thought is that if the living trust is not insured under the Grantor's existing policy the Trust would have a claim against the Grantor under the statutory warranties, and the Grantor would then have a claim against their title insurance policy, if they have one and it is a covered claim.    If the property was not insured, then the Trust would just deal with the issue, it is unlikely it would bring a claim against the original grantor.   Does it make good sense to continue using the Statutory Warranty Deed when transferring property to grantor trusts?

Jeanne

Jeanne J. Dawes
Attorney at Law
Gore & Grewe, P.S.
103 E. Indiana Avenue, Suite A
Spokane, WA 99207-2317
Voice:  509-326-7500
Fax:      509-326-7503
jjdawes at goregrewe.com<mailto:jjdawes at goregrewe.com>

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From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of John McCrady
Sent: Wednesday, February 20, 2019 9:39 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] Best practice - Conveying into new trust

>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<mailto:j.mccrady at pstitle.com>

From: wsbarp-bounces at lists.wsbarppt.com<mailto: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<mailto: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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