Posted by B.L.Renfrow on February 13, 2001 at 07:57:28:
Yes, I do use Bronchick’s letter, as follows:
Dear Ivan Insurer:
Please be advised I intend to transfer title to the above-referenced property into a revocable intervivos trust. The trustee’s name is xxx, whose address is (my mailing address).
Please amend the policy to a landlord-type policy to reflect the loss payee as follows:
“Jane Doe, as Trustee for the 123 Main Street Trust, and the beneficiaries as their interests may appear.”
I don’t have the seller named anywhere, since the trust is now the legal owner of the property, and both the trust and trustee are named.
My own agent (State Farm) says this is acceptable. As I noted, I’ve not encountered a problem yet, with either an insurer or lender, though I have never filed a claim on one of these deals. I have had a couple insurance agents call me up in total confusion when they get the letter (actually, they call the seller, who then calls me). But once I’ve explained it to the agents, they either go ahead and do it as I ask, or else they’re so confused they just give up and stop asking questions!