Best Practices for Trust Funding: Brandon Spivack Authors California Lawyer Article

October 3, 2016

Newer legal developments have altered the once-familiar approach for estate planners: prepare a trust and execute a deed so real property gets transferred into the new trust. However, estate planners are now faced with new concerns related to the transfer of property.

In his California Lawyer article “Best Practices for Trust Funding,” Associate Brandon Spivack discusses the importance of title insurance and the potential ramifications for homeowners if they do not consider their coverage.

A person with a title insurance policy that limits coverage to transfers may still place real property in a revocable trust without a problem. However, if their title insurance company will not issue an endorsement for that transfer, the client should consider purchasing a new policy that includes coverage under a revocable trust.  Without this policy, title insurance companies may terminate coverage exposing you to financial loss, title defects, liens and other problems with your real estate.

The lesson for both attorneys and homeowners—pay close attention to title insurance policies when transferring real property into a revocable trust.

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