Main Content

Understand Title Insurance Requirements for Insuring Living Trusts

To understand title insurance is not always so simple. The living trust has become a common manner of holding title to real property.

Understanding Title Insurance

The following may help you understand a few of the requirements of the title insurance industry.

What is a trust?

An agreement between a trustor and trustee for the trustee to hold title to and administer designated assets of the trustor for the use and benefit of one or more beneficiaries.

Can a trust itself acquire and convey interests in real property?

No. The living trust is an arrangement between a trustee and a trustor. Only the trustee, on behalf of the trust, may own and convey any interest in real property. The trustee may only exercise the powers granted in the trust.

What will the title company require if a trustee holds the title to the property, which is part of the trust?

A certification of trust containing the following information:

  1. date of execution of the trust instrument
  2. identity of the trustor and trustee
  3. powers of the trustee
  4. identity of person with power to revoke trust, if any
  5. signature authority of the trustees
  6. manner in which title to the trust assets should be taken
  7. legal description of any interest in the property held by the trust
  8. a statement that the trust has not been revoked, modified, or amended in any manner which would cause the certification to be incorrect and that the certification is being signed by all currently acting trustees of the trust

If there is more than one trustee, can just one sign?

Maybe. The trust must specifically provide for less than all to sign.

Can the trustee give someone a power-of-attorney?

Only if the trust specifically provides for the appointment of an attorney-in-fact.

What will the title company require if all the trustees have died or are unwilling to act?

If the trustor is not able to do so, or the trust provisions prohibit the trustor from appointing a new trustee, the court may do so.

Who can be a trustee?

Any individual not under a legal disability or a corporation that has qualified to do a trust business in the state of California.

Are there any limitations on what a trustee may do?

Yes, the trustee is limited principally and most importantly by the provisions of the trust and, thus, may only act within the terms of the trust. The Probate Code contains general powers which, unless limited by the trust agreement, are sufficient for title insurers to rely on for sale, conveyance, and refinance purposes.


To sum up, it is imperative to understand what it means to be in “title” to real property. When purchasing real estate, a person or entity is not really purchasing the building and land but rather the legal title to the property. Being in the legal title means you are the current record owner. This is in accordance with the records of the jurisdiction where the real property is located.

Click here for more articles!