My topic of discussion this week, relevant for my clients, is that of title searches, why we do them when transferring property into a living trust, and the interesting things we may find there, unbeknownst to us previously. Us, being the trustor, and the drafting lawyer...
It very well may be that, at some time in the past, a person had reason to sign a document pertaining to an investment, or other encumbrance on their real property, that actually was something more than they realized, like a Joint Tenancy Deed transferring an undivided one-half interest to someone else, that they did NOT intend to transfer. When the encumbrance was paid, the Joint Tenancy Deed was not extinguished, or otherwise released. Big surprise, when a cursory title search, just to be safe, turns this beauty up, along with subsequent mortgages that should have questioned the Deed. But, no, it is just sitting there, minding it's own, very important, business. Tracking down the joint tenant holder to obtain a reconveyance, after twenty-some-odd years is a task in and of itself, if anyone wants to wake that sleeping giant. What to do? Well, it all depends, but the lesson is that it IS important to check title on real property from time to time, and not just assume that all is well.
Which dovetails to my earlier blog, WYSIWYG in Estate Planning...you have to LOOK, in order to see, often times. Most people don't look at their estate plans very often, if at all. Review, people, review. It really isn't as painful as it sounds, and can actually be enjoyable, if you like your lawyer! What a notion. It's like spring housecleaning, in a way. Clean out the cobwebs, make room for some new stuff, clear the clutter from a long, cold winter!
It is spring, after all, and what better time for all sorts of fun activities! My horse, Bulletproof, is doing well.
It's Friday, and I'm fried...are you?
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