How To Change Trustees In A Land Trust
I have never seen how you change the trustee in a land trust. Anybody know how to do that. I asked Mark Warda who wrote two FL Land Trust books and he said that you would need a deed to the new trustee.
Brenda
Good question!
I know for a fact that the beneficiaries always have the right to appoint a successor Trustee. But I've not yet been involved in a similar situation, as my Trustdeed does provide for successor Trustees. I would think that in your Trustdeed you'd have to stipulate the procedure for appointing a successor Trustee if the need arises.
I've also learned to include a paragraph on conflict resolution when there are multiple Trustees.
Another solution might be to transfer the property from the one Trust to a new one.
But I guess I'll have to do some homework on your question, as I'm not sure as how to accomplish the change of Trustee when no provisions were stipulated in the original Trustdeed.
Never too old to learn...
[addsig]
Even is the trust says how to change the trustee, I assume you still need a new warranty deed to trustee. The old deed has John Smith as the Trustee. Do not know how it is going to look to now have Sally Smith signing as Trustee. I believe you would have to record the change of trustee if you did not have a new warranty deed to trustee.
Brenda
Here's what I'll do.
I have a closing this week where I'm using a Trust. It is scheduled at the Title Company as my HML requires Title insurance.
I'll make sure to ask them the question from the point of view of making sure that we have clean Title if such a situation were to occur.
I'm sure they'll come up with something, and I'll pass the info on.
Louis
[addsig]
HOW it's done depends in part on WHO has the right to change or appoint trustee.
If it's a revocable living trust, which the grantor might revoke at any time, then that grantor has the right to change the trustee with a written notice of termination, followed by a new written appointment of the trustee.
Your question really is what will it take on your trust to be able to have title show the legal change.
Probably it's going to take a deed from the existing trustee to the new trustee, but you should get the right form here from a local title co. so they'll be happy with your procedure.
So talk to a local title co., and their lawyer should be able to tell you what they're going to require in order to pass good title to & then from, the new trustee.
BRENDA
Read the trust. All good trusts have provisions for changing the trustee. You must follow these provisions.
John has it correct. It is usually a very simple matter.
BOB FORD
**Please See My Profile**
But the change of trustee is not recorded. So all that has been recorded is the old trustee on a warranty deed to trustee. Now you will record a deed with a new person (the new trustee) signing the deed. Seems to me that you need to either record a new warranty deed to trustee (from old trustee to new trustee), or you need to record the change of trustee.
Brenda
Why is the trustee named in the vesting?
What not just vest in the name of the trust.
Then if the trustee changes, you show the new trust agreement or assignment of trustee when you go to do anything w/ the deed.
sorta like officers of a corp. The corp (basically) lives for every, but officers come and go.
Why is the trustee name in the vesting?
I do not understand this question.
I guess corps do not expect to have title insurance bought.
Brenda
cjmazur has it right...much simpler if the property is bought then sold in the name of the trust, and not the trustee.
However, I've seen title co.s who actively dislike & discourage this, so when the REI buys he may have to battle the title co. to be able to get a deed in the name of the trust.
Once it is in the name of the trust, then it's just a matter of proof to the title co. that the 2d, or successor, trustee DOES have the right to convey or sell.
In my experience, the institutional trustee, such as the bank, normally demands that they record the new trustee change by using deed from ole trustee to new trustee.
Brenda,
The Underwriter of the Title Company indicated the simplest of solutions.
The Beneficiaries make an Amendment to the Trust with some relatively simple wording.
...hereby replaces John as Trustee with Sally as successor Trustee with the right to sign all documents etc. etc.
It would be best to have this notarized.
You need not record this Amendment.
When the Trust sells the property, the Title Company would request to see the Trust documents including this Amendment, and if everything else were in order, issue Title Insurance to the Buyer.
Very straightforward and simple.
Hope this helps.
_________________
Luctor et Emergo[ Edited by Hawthorn on Date 06/23/2004 ]