How to Transfer Property Into Trust & Title Insurance
Title insurance is almost always purchased by new property owners at the time of the purchase. However, when property owners later decide to create an estate plan that includes transferring their property to a living trust, they often neglect to update their title insurance policy to reflect the change in legal ownership. Even though you may create a living trust where you are the trustee and the beneficiary, you still need to amend your title insurance policy to reflect the trustee as the new legal owner of the property.
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Instructions
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Draft and sign a quitclaim deed from yourself (and your spouse, if you are co-owners) to your trustee.
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Have your signature notarized by a public notary licensed in your state.
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Record the signed quitclaim deed in the office of the county recorder where the property is located. You will likely have to pay a small recording fee, probably around $15.
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Contact the title company that issued you title insurance at the time you purchased or inherited the property. Each title company has its own distinct procedure for updating a title insurance policy for estate planning purposes.
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Arrange for an amendment or endorsement of your title insurance policy. Whatever method your title company likes to use, just make sure the updated policy shows that your trustee is now the legal owner of the property.
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Tips & Warnings
Title companies know how to prepare quitclaim deeds and have them recorded. Additionally, if you are a client, the title company will often provide a public notary free of charge. If you need any help preparing the quitclaim deed or locating a public notary, ask your title company for help before you do anything else.
Depending on the title company you are working with, you may have to pay an endorsement fee to update your title insurance policy. Endorsement fees commonly run around a few hundred dollars. Pay for the endorsement even if you think it is a bit pricey, as the money is well worth the risk it covers.
