Title Insurance Requirements for Insuring Trusts in Silicon Valley.

Documents and glasses on desk – understanding title insurance and living trust requirements

In today’s busy Silicon Valley real estate market with crowded probate courts and high estate taxes, the living trust has become a common way to hold title to real property. Understanding the title insurance requirements when property is conveyed to the trustee of a living trust can help streamline your transaction and avoid delays.


What is a Trust in Real Estate?


A trust is a legal agreement between a trustor and a trustee. The trustee holds title to and manages the designated assets of the trustor, including real property, for the benefit of one or more beneficiaries. In Silicon Valley, many homeowners use trusts to protect assets and simplify transfers.


Can a Trust Acquire or Convey Real Property?


A trust itself cannot hold title or convey interests in real estate. Only the trustee, acting on behalf of the trust, can own and transfer property titles. The trustee’s powers, including conveyance rights, must be specifically granted by the trust document.


Title Company Requirements for Trust-Owned Properties in Silicon Valley:


When a trustee holds title to real estate as part of a living trust, the title insurer in Silicon Valley typically requires a certification of trust that includes:

  • The date the trust was executed.
  • Identification of the trustor and trustee(s).
  • Powers granted to the trustee(s).
  • Identification of any person authorized to revoke the trust.
  • Signatory authority for trustee(s).
  • Instructions on how title should be vested.
  • A legal description of the property interests held in trust.
  • A statement confirming the trust has not been revoked, modified, or amended in ways that affect the certification.


These requirements ensure the title insurance policy accurately reflects ownership and protects both buyers and lenders during property transactions in Silicon Valley.


Privacy Considerations in Trust Documentation:


If your trust contains confidential financial details, such as charitable donations, you may request to omit or redact certain pages when providing documents to the title company. Most Silicon Valley title insurance companies accept certifications or redacted copies, balancing privacy with legal verification.


Signing Authority and Trustee Powers:


  • If there are multiple trustees, usually all must sign documents unless the trust explicitly allows otherwise.
  • A trustee can grant power of attorney only if explicitly authorized in the trust.
  • If all trustees are deceased or unable to act, courts in Silicon Valley may appoint a successor trustee per trust or probate laws.
  • Notary acknowledgments of trustee signatures must clearly state the trustee’s capacity in accordance with title insurance standards.


How would the Deed do the Sample Deed Wording for Trust Ownership in Silicon Valley:


Example wording on a deed conveying property to trustees typically reads:
“John Doe and Mary Doe, as trustees of the Doe Family Trust under Declaration of Trust dated January 1, 1992.”


Limitations on Trustee Authority in Silicon Valley Real Estate:


Trustees must act within the powers granted by the trust agreement. California probate codes provide general trustee powers focused on sale, conveyance, and refinancing, which title insurers in Silicon Valley rely upon to issue policies confidently.