Posted by Jim IL on December 29, 1999 at 15:39:42:
I always do, and have the insurance company name the trustee as the “additional inssured”.
The Lender is notified that the home has been placed into a trust and that all future docs etc are to be sent to the trustee at the trustees address.
Same with the insurance company.
So far it has worked out fine.
And, if the lender ever wants to see the trust agreement, fine, let them see it.
The trust agreement names the seller as the beneficial interest, so you are covered there.
The assignment of beneficial interest form stays with you, away from public view.
The lender can find out anyway, because the deed will be recorded and the tax bills sent to the trustee.
I just do not see why keeping the lender in the darl totally is a good idea.
Especially since IF something happens (the home burns down), the insurance proceeds will need to be taken by the trustee and handled.
Also, a power of attrny is a good idea, which allows the trustee or you to handle the funds if they are released into the sellers name.
just my $.02,