Property Held in Trust

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There are many reasons why a owner would choose to hold their property in a trust. Some of the common purposes might include; privacy, estate planning, corporate structure, tax planning, asset protection, or many other reasons.

When a trust is planning on holding title to a property in Colorado there are two ways.

1. In the names of the trustees of the named trust
2. In the name of the trust itself

Colorado statute 38-30-108.5 provides a way for a trustee of a trust to acquire, convey, encumber, lease, or otherwise deal with any interest in real property in the name of the trust. The trustee of the trust files a Statement of Authority complying with CRS Section 38-30-172(2) showing the existence of the trust and their authority to act on behalf of the trust. The Statement of Authority must be recorded in the same county as the property.

Title insurance companies will require the review of the trust agreement to establish who is authorized to act on behalf of the trust. The title company will also review the Statement of Authority.

In the event of a deceased or incapacitated trustee of the trust the title company will review the Trust Agreement to determine who can act as the successor to the trustee.

Closings may be delayed if the authorized person set for in the Trust Agreement and Statement of Authority is unavailable to sign the closing documents.

If a Trust Affidavit or Statement of Authority does not exist for how title is held on the property, the title company will require a Statement of Authority to be recorded at closing to place evidence of the trust's authority.

Disclaimer - Content is general information only. Information is not provided as advice for a specific matter. For legal advice on a specific matter, consult an attorney.