A trust is a legal tool often used to determine what happens to a piece of real estate. Typically, trusts are used to avoid probate. They spell out exactly what happens with a piece of property when the owner dies. There are numerous different types of trusts, and there are things you should be aware of when it comes to each type and title insurance. In this article, we are going to explain three of the most common types of trusts that crop up in the title insurance world.
Inter-Vivos (Living) Trusts
Inter-vivos (or living) trusts are the most common types of trusts we deal with in regards to commercial title insurance. A living trust is a trust that is established while the trustor is still alive. This trust agreement can entail asset distribution during or after the trustor’s lifetime.
A testamentary trust is created by a person’s will after they pass. In these situations, the will itself will operate as the trust agreement for the purposes of title insurance.
A business trust is actually a form of business organization (similar to a corporation). Investors in the business trust receive beneficial interest and the trustees administer the trust in accordance with the terms of the declaration of trust.
Commercial Partners Title Insurance
At Commercial Partners Title Company, we offer title insurance services to clients throughout the state of Minnesota, and around the country. Our track record has earned us the recognition of experts in commercial transactions around the United States. If you are approaching a commercial transaction, let us help you protect your interest in the property. We can perform a title search, develop an owner’s title insurance policy, and make sure your closing goes smoothly. Contact our experts today at our downtown Minneapolis office to learn more.