Trusting a Trustee’s Deed for your Real Estate Planning

You’ve inherited your parents’ West Palm Beach, Florida property through a trust and now wish to sell it. Since a trust does not go through probate, can you simply list the property for sale on the market? As with most legal issues, it is never that simple and you may have to convey the property out of the trust through a trustee’s deed.

A trustee deed conveys ownership of real estate that is being held in trust. The trustee’s deed refers to the person who is making the conveyance. The trustee can be signing either a warranty deed, where the deed provides certain warranties against possible issues with title, or a quitclaim deed, where not warranties are made.

If a property is held in trust, it may be difficult to sell the property directly from the trust to the new buyer. This is because the title insurance company may be concerned there are beneficiaries of the trust who may later dispute the transaction. I have also heard that it is difficult to obtain liability insurance on the property since insurance carriers, particularly ones in Florida, will not issue policies with liability coverage to properties held in trust.

If you currently own a property through a trust and have  concerns, always consult a qualified attorney.

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