VA Decedents Requirements

Procedures and requirements when dealing with deceased owner

 

REQUIREMENTS:

Always Use:

1. Supply company with death certificate of _________________. The company hereby reserves the right to make additional requirements/exceptions after review of said death certificate.

2. Supply satisfactory evidence as to payment of Federal Estate and State Inheritances Taxes, if any, due on the estate of _________________.

In addition, use either 3. A., for intestate cases (without a will), or 3. B., for testate cases (with a will):

3.   A. The property to be insured is subject to the following exceptions to coverage due to the death of _________________, on __________:

1)   possible debts of said decedent, or against said estate;

2)   possible federal and state estate and/or inheritance taxes;

A corporate surety bond covering the open estate of said decedent must be furnished to Stewart Title Guaranty Company and approved by it prior to closing in the amount of $(net proceeds), or, in lieu thereof, extra-hazardous risk premium being paid to Stewart Title Guaranty Company, in the amount of $2.00/$1,000 of the SALES PRICE.

B. The property to be insured is subject to the following exceptions to coverage due to the death of _________________, on __________:

1)   possible debts of said decedent, or against said estate;
2)   possible federal and state estate and/or inheritance taxes;
3)   possible appeal from the order admitting probate of the last will and testament of said decedent;
4)   possible suit to impeach the said will of decedent;

Include the following language:

4.   Company must be provided:

1.   A corporate surety bond covering the open estate of said decedent naming Stewart Title Guaranty Company as loss payee, approved by Company prior to closing in the amount of $(net proceeds);

OR

2.   Extra-hazardous risk premium paid to Stewart Title Guaranty Company, in the amount of $2.00/$1,000 of the SALES PRICE and execution by seller of Company’s Indemnity Agreement;

OR

3.   Escrow of the net proceeds of sale for a period of one year from date of death and execution by seller of Company’s Indemnity and Escrow Agreement.

Options as to bond payments:

Pay STGC $2.00/$1,000 based on sales price

□   Remit $2.00/$1,000 to Stewart Title Guaranty Company
□   Remit on a separate register and include the owner's policy number

Pay bonding company their rate (usually $5.00/$1,000, based on the proceeds amount)

□   One bonding company you may contact:
□   Scott Insurance

                        Bond Department
                        1-800-365-0101

 

 

No guidelines are available for this form at this time.