Title Insurance and Revocable Trusts

One of the main reasons people create revocable trusts in California is to simplify the transfer of real estate to their beneficiaries without probate. There’s a catch, though. If you bought your home before 1998, your title insurance policy may not extend coverage to “trustees.” Although title insurance claims are rare, you’ll want to check your policy to confirm that the term “insured” includes the trustee and successor trustee of your trust. If you’re not sure, be sure ask the insurance company. If your policy does not include trustee coverage, you can obtain an endorsement. Most companies offer the endorsement for free or a nominal charge ($100).

Can’t find your policy? Take a look at the grant deed, which is usually prepared and recorded by the title insurance company. If that company is no longer is business (which happens more often than you think), you may have to do a little digging to find the successor company.

Kathleen Pender of the San Francisco Chronicle posted two excellent articles about this topic. You can read them here: