Insuring Living Trusts Cambridge MA

Living trusts have become more and more common in recent years as a way to avoid the arduous probate process. Trusts can hold real property like individuals do, but there are a few differences in the way title companies insure trusts, as opposed to individuals.

John Anthony Froio
(800) 553-9910
1 WEST ST
CAMBRIDGE, MA
Specialties
Antitrust, Litigation, Estate Planning
State Licensing
Massachusetts

Timothy J Scanlan
(617) 787-0177
40 Soldiers Field Place
Boston, MA
Specialties
Estate Planning, Trusts, Tax
State Licensing
DC, Massachusetts

Kara O'Brien Holland
(617) 629-7500
99 Electric Avenue
Somerville, MA
Specialties
Elder Law, Estate Planning, Appeals
State Licensing
Massachusetts

Kevin J. Romano
(617) 492-1122
86 SHERMAN ST
CAMBRIDGE, MA
Specialties
Real Estate, Estate Planning
Education
New England School of Law,University of Massachusetts, Boston
State Licensing
Massachusetts

Punam P. Sharma
(617) 876-8762
230 MONSIGNOR OBRIEN HWY
CAMBRIDGE, MA
Specialties
Real Estate, Estate Planning
Education
Suffolk University Law School,Stonehill College
State Licensing
Massachusetts

Stephen A. Glines Jr.
(617) 628-1110
92 HIGHLAND AVE
SOMERVILLE, MA
Specialties
Family, Estate Planning, Litigation
Education
Suffolk University Law School,Suffolk University
State Licensing
Massachusetts

Neal A Winston
(617) 776-3300
440 BROADWAY
SOMERVILLE, MA
Specialties
Elder Law, Social Security, Estate Planning
State Licensing
Massachusetts

Timothy P Scanlan
(617) 787-0177
40 SOLDIERS FIELD PL
BOSTON, MA
Specialties
Estate Planning, Trusts
Education
Boston University School of Law,Catholic University of America, School of Law,Georgetown University
State Licensing
Massachusetts

Michael A Bass
(617) 787-6113
40 SOLDIERS FIELD PL
BOSTON, MA
Specialties
Business, Estate Planning, Tax, Trusts, Probate
Education
Boston University School of Law,New England School of Law,University of Vermont
State Licensing
Massachusetts

Keith William Michon
(617) 492-1122
86 SHERMAN ST
CAMBRIDGE, MA
Specialties
Real Estate, Estate Planning
Education
New England School of Law,Boston University,Northeastern University,Union College
State Licensing
Massachusetts

Insuring Living Trusts

Provided by: 

  • Only the trustee can own or control real property for the trust
  • A title company requires some paperwork for trusts holding titles
  • A trustees actions are limited by the trust agreement

    Living trusts have become more and more common in recent years as a way to avoid the arduous probate process. Trusts can hold real property like individuals do, but there are a few differences in the way title companies insure trusts, as opposed to individuals.

    Trusts are agreements that allow a trustee (who is named in the agreement) to administer the assets of the trustor (the creator of the trust) for the use and benefit of the trust’s beneficiaries (who are named in the trust agreement). The trustee has power over the trust and is the only person who can make decisions for the trust, including acquiring or conveying interest in real property. The trustee’s powers over property can be no greater than those originally laid out in the trust agreement.

    Title companies require some paperwork in order to insure a property held by a trustee on behalf of a trust. This paperwork is to ensure that the trust and the trustee’s holding of the property are valid. A certification of the trust is required with the following information:
  • Date of execution of the trust
  • Identities of the trustor and trustee(s)
  • The trustee(s)’s powers
  • Identity of any person who has the power to revoke the trust
  • Signature authority of the trustee(s)
  • How the title to the trust assets is to be taken
  • Legal description of the trust’s interest in the property
  • Statement that the trust has not been modified, amended, or revoked in a way that would affect the previous elements in the certification and that all current trustees are signing the certification.

    Under some trust agreements with multiple trustees, one of the trustees can apply for title insurance without the others’ approval. For this to be allowed, it must specifically be stated in the trust agreement. This is also the case with power-of-attorney – a trustee can give someone power of attorney for the trust only if specifically allowed to do so.

    If all of the trustees die or are unable to act, and the trustor is either unable to appoint a new trustee, or is prohibited from doing so by the trust agreement, a court can appoint a new trustee.

    Nearly anyone can be a trustee. The only requirement is that he/she is not under legal disability. Many corporations can also be trustees, but they must first qualify to do trust business within the state.

    If a trustee is holding property on behalf of a trust, the title’s wording will be worded to reflect this fact.

    There are not too many difference in title insurance requirements between property held by individuals and property held on behalf of trusts. There is a bit more paperwork involved, but this is relatively minor. Trustees are constrained by the trust agreement in managing the property, so there is little worry for the title company in issuing the insurance.

    Visit Homesalesnetwork.com for more information