Lost Deeds to Trust

You're a trustee.  What are you the trustee of?  The trust, right?  Ok, so what does the trust consist of?  One of the first things you should do as a new trustee is create an inventory of the trust assets.  Hopefully you can somewhat rely on a written inventory left by the creator of the trust, but don't stop there. You have an obligation to do a little investigative work to find all trust assets.

For many years, it was customary practice to sign a deed at the time the trust was created.  The type of deed often used was a Quit Claim deed. It was very common that the client would be instructed to hold the deed with their important documents without recording it with the County Register of Deeds.  Now, trust practices have changed somewhat, but more on that in a future post.

Knowing this, new trustees should determine whether there were any deeds transferring real estate to trust, and whether or not those deeds were recorded.  Since a lost deed could cause a probate of the real estate, if you've become the trustee due to your loved one's incapacity (not death), you should act quickly.  If there is real estate that has not been properly transferred to the trust and the property owner/trust settlor is living, there's still a chance to sign the appropriate documents to complete the transfer to trust.  If the trust settlor is living but lacks the capacity to sign a deed, the property owner's agent under a valid general durable power of attorney could have the authority to sign a deed transferring the property to the trust, thereby saving the estate the expense of probate.

If you have questions about any aspect of trust administration, feel free to contact me.  You'll find me online at www.lawofficeofjoannehinds, or at www.facebook.com/trustlawyer.

Trustees Look to Loved One's Financial Advisor for Initial Guidance

Can I still accomplish the trust creator's wishes in light of the current market? Where can I turn for advice?

If you've recently become trustee of a living trust, you may have many questions like these. One way to get started might be to interview the financial advisor used by the trust's creator during his or her lifetime.

In many cases, you can expect this advisor to have a wealth of detailed information about the trust's assets that may help you as you begin to create an initial inventory.

Start With a Good Inventory

Whether you're the grantor or settlor of the trust or whether you've just become trustee of another person's trust, a good inventory (or list) of the assets of the trust will very helpful.

Make note of each asset and the asset's location. Describe the asset which as much detail as you have, including account numbers, model numbers, vehicle identification numbers, legal descriptions and property identification numbers, where appropriate.

Start by estimating the value of each asset, but remember that it may be necessary to have the assets appraised in some circumstances. You can get asset values online, at websites such as Kelley Blue Book or Nada Guides for vehicles, RVs, boats, motorcyles, personal watercraft and more.

A detailed trust inventory will ensure the trustee has the information they need to fulfill their duties under the trust agreement and under Michigan law. For more information about how this information might be helpful, see the following statute at the Michigan legislature's website:

MCL 700.7303 Duty to Inform and Account to Beneficiaries.