Clearing Title on Estate and Trust-Owned Property

Property that passes through an estate or is held in trust generates a specific set of title exceptions. They are clearable, but only if they are identified early enough to gather the documents.

Estate conveyances

• Authority. Letters testamentary or letters of administration, current and unrestricted. Restricted letters limit what the fiduciary can convey.
• Estate tax. New York and, where applicable, federal estate tax lien considerations, including the release or waiver documentation that removes the exception.
• Heirship. Where property passes by intestacy, the record must establish who the distributees are. An affidavit of heirship is often required.
• Creditor exposure. Claims against the estate that could attach to the real property.
• The deed itself. An executor’s or administrator’s deed must recite the authority correctly and be executed in the fiduciary capacity.

Trust conveyances

• Trustee powers. The trust instrument, or a certification of trust, must establish that the trustee has authority to sell and convey the specific property.
• Successor trustees. Where the original trustee has died or resigned, the record must show a valid succession.
• The transfer into trust. Confirm the property was actually deeded into the trust and that the deed was recorded — this is missed more often than it should be.
• Revocability and beneficiary consent. Depending on the instrument, beneficiary joinder may be required.

Start the document chase at order

These exceptions rarely fail for legal reasons. They fail because letters are eight months old, the certification of trust was never prepared, or the transfer deed into the trust was signed and never recorded. Ask for the documents when the order opens, not when the commitment issues.

Viking Abstract provides title clearance and transaction support for fiduciary and estate conveyances. We do not practice law and do not advise on the drafting, selection or legal effect of any instrument.