Decedent's Estates

Standard Exception Topic

DEC


Decedent's Estates

If an owner dies, you must verify compliance with state probate requirements.

Requirements

Standard Exception Subtopic

DECR01

STG

10/10/2011
V 1

Pending Administration-Require Court Order

The estate of ____________, deceased, is subject to administration under ____________________. The Company requires for its review satisfactory orders authorizing the proposed transaction. At that time, the Company may make additional requirements or exceptions.
Comment: This requirement is appropriate where administration of a decedent’s estate is pending and a court order (or orders) is necessary for the sale or other transaction.

Standard Exception Subtopic

DECR02

STG

10/10/2011
V 1

Require Administration and Authorization

The Company requires for its review satisfactory authorization of the proposed transaction pursuant to administration of the estate of _____________, deceased. At that time, the Company may make additional requirements or exceptions.
Comment: This requirement is appropriate to require administration of a decedent’s estate and court authorization as necessary on that estate.

See Underwriting Manual


Standard Exception Subtopic

DECR03

STG

10/10/2011
V 1

Determination of Heirship if No Administration

The Company requires for its review a satisfactory court order or decree relating to the estate of __________, deceased, in compliance with applicable law determining the heirs of said decedent and satisfactory deeds from the heirs and their spouses. At that time, the Company may make additional requirements or exceptions.
Comment: You should generally make this requirement if a person died intestate and no administration of the decedent’s estate will be necessary. In some localities, heirship affidavits are relied upon periodically.

Standard Exception Subtopic

DECR04

STG

10/10/2011
V 1

Proof of Death-Joint Tenancy or Tenants by En

The Company requires recordation of a certified copy of death certificate of ________________, or, if same is not available, a satisfactory affidavit from a reliable person well acquainted with the facts, establishing the time and place of residence as of death of the decedent. At that time, the Company may make additional requirements or exceptions.
Comment: Subject to additional requirements of local practice, you may use this provision if a joint tenant or tenant by entireties has died.

Standard Exception Subtopic

DECR05

STG

10/10/2011
V 1

Estate and Death Taxes

Lien for federal estate and state taxes, if any, on the estate of ____________. The Company requires satisfactory proof that no taxes are owing or that all taxes have been paid. After the Company is furnished this item, the Company may make additional requirements or exceptions.
Comment: You must verify that a decedent’s estate owes no federal estate or state estate/inheritance taxes, either because not taxable (due to size or deductions) or because the taxes were paid. Do not rely upon an indemnity where taxes may be owed unless you secure the Company’s approval.

Release of lien of estate tax as to the premises herein must be obtained and recorded, or proceedings must be reopened and amended to include said premises, and any tax fixed thereon must be paid.

1983 $275,000.00 1987 to 1997 $600,000.00
1984 $325,000.00 1998 $625,000.00
1985 $400,000.00 1999 $650,000.00
1986 $500,000.00
(list by name and birthdate)

Exceptions

Standard Exception Subtopic

DECX01

ALTA

10/10/2011
V 1

Recorded Estate Taxes

Notice of federal estate tax lien recorded ___________ [filed under __________] on the estate of _________________, deceased, for the amount of _____________ plus interest and penalty.
Comment: Notices of federal tax liens are generally effective for 10 years and 30 days from date of assessment. However, the special federal estate tax lien is effective for 10 years from death without need of recordation. Certain federal estate tax liens may be effective for 15 years.

Standard Exception Subtopic

DECX02

ALTA

10/10/2011
V 1

Recorded State Death Tax Lien

Notice of state death tax lien recorded ___________ [filed under __________] on the estate of _______________, deceased, for the amount of _______________ plus interest and penalty.
Comment: Except to any recorded death tax (inheritance estate) lien unless it is barred by limitation.

Standard Exception Subtopic

DECX03

ALTA

10/10/2011
V 1

Federal Estate Tax Lien

Any lien for federal estate taxes, plus interest and penalty, by reason of the death of _________________
Comment: You must verify that a decedent’s estate owes no federal estate or state estate/inheritance taxes, either because not taxable (due to size or deductions) or because the taxes were paid. If you have not received adequate proof, add this exception. Do not rely upon an indemnity where taxes may be owed unless you secure the Company’s approval.

Standard Exception Subtopic

DECX04

ALTA

10/10/2011
V 1

State Death Tax Lien

Any lien for state death taxes, plus interest and penalty, by reason of the death of _______________.
Comment: You must verify that a decedent’s estate owes no federal estate or state estate/inheritance taxes, either because not taxable (due to size or deductions) or because the taxes were paid. If you have not received adequate proof, add this exception. Do not rely upon an indemnity where taxes may be owed unless you secure the Company’s approval.

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

Schedule A

Standard Exception Subtopic

DECS01

STG

10/10/2011
V 1

Heirs or Devisees Subject to Pending Administra

The heirs at law or devisees of _________________, deceased, subject to the administration of the estate of said decedent in _____________ County, Probate Case No. ______________ wherein ________________ is the appointed __________________ of said estate.
Comment: Use this language for vesting if there is a pending administration.

Standard Exception Subtopic

DECS02

STG

10/10/2011
V 1

Heirs or Devisees Subject to Future or Unspecif

The heirs at law or devisees of ___________, deceased, subject to the administration of the estate of said decedent.
Comment: Use this language for vesting if the owner is dead and administration has not occurred (but is required) or is possibly pending but is not identified.

See Underwriting Manual


Standard Exception Subtopic

DECS03

STG

10/10/2011
V 1

Independent Executor

____________, independent executor of the estate of ________, deceased in _____________ County, Probate Case No. _________.
Comment: Although title is not vested in an independent executor as such, it is common to reflect title in this manner if the independent executor clearly has the power to sell in the proposed transaction.

Standard Exception Subtopic

DECS04

STG

10/10/2011
V 1

Independent Executor and Devisees

____________, independent executor of the estate of _________, deceased in _____________ County, Probate Case No. __________, and _____________________, individually.
Comment: Use this vesting to show devisees if you are not clearly satisfied that the independent executor can sell the land.

Standard Exception Subtopic

DECS05

STG

10/10/2011
V 1

Personal Representative

____________, personal representative of the estate of ________, deceased in _____________ County, Probate Case No. _________.
Comment: Although title is not vested in a personal representative as such, it is common to reflect title in this manner if the personal representative clearly has the power to sell in the proposed transaction.

Standard Exception Subtopic

DECS06

STG

10/10/2011
V 1

Personal Representative and Devisees

____________, personal representative of the estate of _________, deceased in _____________ County, Probate Case No. __________, and _____________________, individually.
Comment: Use this vesting to show devisees if you are not clearly satisfied that the personal representative can sell the land.

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