Posted by Sean on January 23, 2007 at 06:47:17:
The trustee has been assigned beneficial interest in the property. I am the trustee!!!
Adding bank as insurer - Posted by Sean
Posted by Sean on January 22, 2007 at 07:53:38:
Tried to have second mortgage place on a property I acquired 1/03 for the purpose of having cash available to fix current rehab project. (Appraisal $100K/ Bal. $62K) Both properties are located in Tennessee. All was well until I needed and insurance letter placing bank on the policy. I discovered I wasn’t on the policy and had to go to the previous owner for permission. Well, needless to say, he had a fit and refused to sign the document.
- Can I take out a separate policy on the property and have myself and bank on it??
- Previous owner signed Warrantee Deed to Trustee, Limited Power of Attorney, Declaration of Trust and Land Trust Agreement, Assignment of Beneficial Interest in Land Trust (to me as Trustee). I understand that I own the property lock, stock and barrell, YES??!! Can he “revoke” the Trust and Land Trust Agreement that gives me authorization as trustee??? If so, then the Warranty Deed to Trustee is invalid, as well, meaning I DON’T own the property. It appears he may have me over the barrel, NO?? Your guidance is much appreciated.
Sean
Re: Adding bank as insurer - Posted by colvegas
Posted by colvegas on January 23, 2007 at 20:44:45:
Sean,
This scenario sounds abit confusing and first off how can you as trustee hold beneficial interest in the trust…?? you are either one or the other not both and if you were both that is a issue of merger and would invalidate your trust or create what we call a dry or passive trust.
You as trustee would hold both the legal and equitable title by virtue of the doctrine of equitable conversion thus asset protecting the property title for the grantor/settlor beneficiary…
No legal advice intended I know this from working with these entities and our legal team who reviews the docs.
YOu need to look closely or get an attorney to review the trust agreement since in most cases the beneficiaries can substitite the trustee for whatever reason and that is via mutal power of direction from the trust beneficiaries…
I do not know which type of trust this is…but if it is beneficiary directed this previous owner being the settlor or grantor beneficiary can revoke the trust if is is a obviously a revocable trust once again check that. YOu did say you got a LPOA verify that is authentic and legal as you alluded to in your post.
I would really check into the document and get the legal help on this an preferably a attorney who knows trust entities and how they are structured.
If you were a beneficiary in the trust then you by virtue of being a beneficiary would automatically be insured under the grantor/settlor beneficiary’s ( owner) homeowners insurance in the trust Reference Probate Code 18110.5.
If you wish to discuss feel free to call me at 702-400-7632 Iam real curious how this was done, I also can pass this by our legal team but no promises.
Good luck either way I hope it works out for you.
Re: Adding bank as insurer - Posted by Max-Va
Posted by Max-Va on January 22, 2007 at 22:19:45:
Who holds the benefical intrest of the trust. If the previous owner is the beneficary of the trust he is the owner. See a lawyer ASAP