Whether you are selling a property in which title is in a Trust or purchasing property in your Trust, here are a few tips for a smooth closing process:
- If you are a Seller and the property is held in a Trust, you will need to have an open bank account in the name of the Trust to receive your sale proceeds.
- A Certificate of Trust may be requested from you in order to close on a sale or purchase. The Certificate of Trust must follow certain Michigan guidelines and be a signed original so that the Certificate can be recorded with the County Register of Deeds.
- A Certificate of Trust is a document that states the Trust has been created and is still in existence. It states the name of the Trustee and powers to which the Trustee has regarding real estate, specifically the Trustee’s ability to convey the property.
- For more information on the requirements of a Certificate of Trust you may contact our office or you can find the Certificate of Trust statute at www.legislature.mi.gov/documents/2017-2018/billenrolled/House/htm/2017-HNB-5362.htm
- Make sure your Trust documents are up to date and that you can locate the Trust and any amendments. If your current Certificate of Trust lists a Trustee that is no longer serving or there has been a recent Amendment to your Trust, you will need an updated Certificate of Trust.
- The owner of a principal residence in Michigan may apply for and receive a principal residence exemption from certain school taxes. The principal residence exemption is available for a residence transferred to a revocable trust; however, a transfer to a revocable trust could be interpreted as creating a new owner of the property. To avoid any issues, it is best to contact your local assessor with any questions or concerns about your principal residence exemption.
- If you recently created a Trust and are purchasing property, seek advice from your attorney about putting title in your Trust.