TRU

Trusts

Business trusts are sometimes creatures of state law. For example, Real Estate Investment Trusts are subject to specific legislation in most states. In other circumstances, the trusts are subject to the normal limitations on an unincorporated association, such as requirement of conveyance to and by trustees.

Requirement

TRUR01 STG

Copy of Trust

The Company must be furnished with a copy of the Agreement, Indenture or Declaration of Trust of ____________________________, together with copies of any amendments, modifications, or revocations. In the event there have been no amendments, modifications, or revocations, the Company will require satisfactory evidence to that effect. At the time the Company is furnished these items, the Company may make additional requirements or exceptions.
Comment: You generally must review a copy of the trust agreement in order to verify authority of the trustee to sell. In some states, this requirement is not necessary if the trust and beneficiaries are undisclosed.

TRUR02 STG

Liens Against Trustee

The Company must be furnished with satisfactory evidence that ______, Trustee, holds no beneficial interest in the Trust. At that time, the Company may make additional requirements or exceptions.
Comment: If a judgment or tax lien applies to the trustee solely in his or her individual capacity, you may waive that lien if you confirm that the trustee never had and does not have any present or contingent beneficial interest. The liens must be shown until you confirm those facts.

See Underwriting Manual

TRUR03 STG

Testamentary Trust, letters required

The last will and testament of the decedent ______________ makes a specific devise of the real property to __________________, the trustee(s) named in the will, with power of sale to the trustees. The trustees must qualify and proper letters of trusteeship must be obtained from the Surrogate’s Court having jurisdiction, before the power of sale may be exercised.

TRUR04 STG

Testamentary Trust, foreign corporate trustee;

The last will and testament of the decedent ______________, probated in _________(state)_________, makes a specific devise of the real property to __________________, the trustee(s) named in the will, with power of sale to the trustees. There must be comity between the laws of said state and the laws of the State of New York, as to the qualification of corporate trustees. See § 708 of the Surrogate’s Court Procedure Act (SCPA) and § 131.5. of the Banking Law. If no comity exists, then a successor trustee must be named and qualified in this state. If comity does exist, the trustee must qualify and proper letters of trusteeship must be obtained from the Surrogate’s Court having jurisdiction, before the power of sale may be exercised.

TRUR05 STG

Where title is now in or to be taken by trustee

Declaration of Trust must be submitted to the Company for consideration. The Declaration or a memorandum thereof should be recorded, and additional exceptions may be raised upon such review.

TRUR06 STG

Qualification of Trustee

Proof is required from the Settlor of the Trust or the Attorney for the Trust that the Trust is in full force and effect and that the Trustee(s) named therein is/are presently qualified to act thereunder.

Note: You may add additional local requirements here. Please consult with our underwriting personnel in preparing appropriate provisions.

Exception

TRUX01 STG

Terms of Trust

Policy excepts the terms, covenants, conditions and provisions of the Declaration of Trust, dated __/__/__, made by __(Settlor)__.

Schedule A

TRUS01 STG

Trustee of Named Trust - Vesting of Title

__________, as Trustee of the _____________ Trust.
Comment: You may use this vesting language if the title is vested in a trustee of a declared trust (e.g., by deed). You must review the trust in order to verify the authority of the Trustee to transfer.

See Underwriting Manual

TRUS02 STG

Trustee of Declaration of Trust - Vesting of Ti

__________, as Trustee(s) under Declaration of Trust dated _______________.
Comment: You may use this vesting language if the title is vested in a trustee of a declaration of trust. You must review the trust in order to verify the authority of the Trustee to transfer.

See Underwriting Manual

TRUS03 STG

Trustee of Testamentary Trust - Vesting of Titl

__________, as Trustee under the Will of _______________, deceased.
Comment: You may use this vesting language if title is vested in a trustee under a testamentary trust. If the name of the trustee is stated, include it in the vesting language. You must review the will in order to verify the authority of the Trustee to transfer.

See Underwriting Manual