Posted by Stacy (AZ) on May 20, 1999 at 15:31:47:
Here’s a repost of Bronchick’s answer to a question on the “Legal Forum”. If your property is in a land trust
it seems to answer your question.
Question by Mike Acord:
If I take title in a Land Trust do I have to double insure the property if I’m trying to avoid due on sale issues or is there an easier way?
Answer By William Bronchick:
Once you transfer title to the trust, you should have the insurance company name the trustee as the new insured. If you change beneficiaries, the title is still in the name of the trustee, so no further change is necessary.
CAVEAT: I hear that Flordia insurance companies are giving homeowners a hard time about this because they feel that the trustee has no legal claim to the property. This is simply not true, but it can create a practical problem. I recommend never using the words “land trust” when speaking to the “unenlightened.” Simply call it a “living trust.”