TRUSTS...WHAT TO DO WHEN YOU ENCOUNTER ONE ON A TITLE WORK

Living trusts use to be only for the wealthy.  Now its use is common practice to minimize estate and inheritance taxes.  It is imperative that the title company sees, at minimum, the section of the trust that relates to the transfer and acceptance of property (also known as the "powers of the trustee").  The reason behind this is that each and every trust is established for very different reasons and we must protect the original intent of the trustees to abide by their intentions.

At First American Title of Michigan, we require a "Certificate of Trust" to be recorded along with the mortgage and/or deed at the time of closing.  This certificate must be dated within 60 days of closing.

This is due to a requirement as per Michigan Land Title Standard 8.3 and Section 565 of the Michigan Compiled Law.

This is for the protection of the Buyer, Seller, Realtor and Lender.  It is also needed for the title company to ensure a proper and legal transfer of title to occur.

MORE INFORMATION REGARDING CERTIFICATE OF TRUSTS

What needs to be on the Certificate of Trust?  See the following link to find out.

www.legislature.mi.gov/(S(soa0tk55d4jxx2b4dz3dlo55))/mileg.aspx?page=getObject&objectName=mcl-565-432   

Who can sign a Certificate of Trust?  See the following link to find out.

www.legislature.mi.gov/(S(soa0tk55d4jxx2b4dz3dlo55))/mileg.aspx?page=getObject&objectName=mcl-565-432