[WSBARP] Rights of Heirs and Beneficiaries to Prior Title Policy Issued to Decedent

[Dwight Bickel]

This supplemental explains the rights of heirs and beneficiaries to the prior title insurance issued to a decedent.

Basic ALTA Owner's Policy (2006):

(d)          “Insured":  The Insured named in Schedule A.
(i)           the term "Insured" also includes
(A) successors to the Title of the Insured by operation of law as distinguished from purchase, including heirs, devisees, survivors, personal representatives, or next of kin;
...
(D) a grantee of an Insured under a deed delivered without payment of actual valuable consideration  conveying the Title
...
(4)          if the grantee is a trustee or beneficiary of a trust created by a written instrument established by the Insured named in Schedule A for estate planning purposes.

(ii) with regard to (A), (B), (C), and (D) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured.

Residential ALTA Homeowner's Policy (2013):

2.            CONTINUATION OF COVERAGE
b.            This Policy also insures:
 (1)         anyone who inherits Your Title because of Your death;
...
(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
(5)          anyone who receives Your Title by a transfer effective on Your death as authorized by law.

c.            We may assert against the insureds identified in Section 2.b. any rights and defenses that We have against any previous insured under this Policy.


From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Dwight Bickel
Subject: [WSBARP] Title Insurance to Insure Inheritance

With modern title insurance forms, the heirs remain insured and protected by the prior title insurance policy issued to the decedent. Of course that policy will not insure the validity of the transfer to the heir, or their rights as an heir or a devisee. If there are questions about that probate, or the rights of the transfer, a new title policy would be required. The prior policy dollar amount may not be a realistic present value of the land. A policy issued twenty years ago will be a low dollar amount, and a lot of time has passed where changes to the property may have occurred.

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