ElderLaw News — The Estate Planning & Elder Law Firm, P.C. — MD, VA, DC
ElderLaw News

ElderLaw News is a weekly e-newsletter that brings you reports of legal developments and other trends of vital interest to seniors and their advocates. This newsletter is brought to you by The Estate Planning & Elder Law Firm, P.C., William S. Fralin, Esq., President.

Owners Title Insurance: Something to Think About

Owners Title Insurance is something most people think about only a few times during their lives.

It is purchased when they buy real estate, then it is mostly forgotten unless there is a problem and a claim needs to be filed. Owners title insurance requires a one-time premium and it stays in effect as long as the purchasers or their heirs own the property. When titling real estate into the name of a trust, for estate planning purposes, most people never consider how that might affect their Owners Title Insurance Policy.

For years attorneys have inadvertently terminated their client’s title insurance coverage when transferring property to the clients’ trusts because coverage was limited to the original purchaser of the property. The national industry standard 1992 ALTA Owners Policy requires the trustees or beneficiaries under a trust to obtain an endorsement to the Policy to extend coverage past the original owner and unfortunately, this was often overlooked in the estate planning process. The ALTA 2006 Owners Title Insurance Policy revised the standard 1992 ALTA Owner’s Policy of Title Insurance and expanded coverage to include estate planning needs, specifically the transfer of property to a trust for estate planning purposes.

In addition, the 1998 ALTA Homeowners Policy, which is an extended coverage policy and generally runs about twenty percent higher in premiums, also covers the transfer of property to a trust for estate planning purposes. Therefore, it is very important, when considering a transfer of real estate to a trust, to look at the existing Owners Title Insurance Policy and determine if coverage will remain in effect after the transfer.

The Estate Planning & Elder Law Firm understands that the transfer of a parcel of real property to a trust is more than a deed. To avoid unintended consequences, they will consider and take into account the effect of the transfer on mortgages, home owner’s insurance and title insurance.

Speakers

If you are interested in having an Elder Law attorney from The Estate Planning & Elder Law Firm, P.C. speak at an event, then please call us at:

Maryland (301) 214-2229
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The Estate Planning & Elder Law Firm, P.C.

The Estate Planning & Elder Law Firm, P.C. is an elder law firm. We represent older persons, disabled persons, their families, and their advocates. The practice of elder law includes estate planning, estate and trust administration, powers of attorney, advance medical directives, titling of assets and designations of beneficiaries, guardianships, conservatorships, and public entitlements such as Medicaid, Medicare, Social Security, and SSI, disability planning, income tax planning and preparation, care management, and fiduciary services. For more information about The Estate Planning & Elder Law Firm, P.C., please visit our website at http://www.chroniccareadvocacy.com.

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The Estate Planning & Elder Law Firm, P.C. encourages you to share this newsletter with anyone who is interested in issues pertaining to the elderly, the disabled and their advocates. The information in this newsletter may be copied and distributed, without charge and without permission, but with appropriate citation to The Estate Planning & Elder Law Firm, P.C. If you are interested in a free subscription to the Elder Law News, then please e-mail us at office@chroniccareadvocacy.com, telephone us at (703) 243-3200, or fax us at 703-841-9102.

This newsletter is not intended as a substitute for legal counsel. While every precaution has been taken to make this newsletter accurate, we assume no responsibility for errors, omissions, or damages resulting from the use of the information in this newsletter. The Estate Planning & Elder Law Firm, P.C. thanks the law firm of Hook Law Center for their input to this newsletter.

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