Happy 2025!
May it be better than 2024… or 2023… or….
YOU HAVE QUESTIONS, WE HAVE ANSWERS!
VIVA ESCROW Q & A SEGMENT
(Real questions sent to us – verbatim!)
QUESTION:
My Seller is going out of the country and needs a power of attorney to his sister while we are selling his property. Can you help him?
ANSWER:
I looked up the name your Seller has on the property and it looks like it is under his Trust. I am sorry, but due to the nature of the ownership, the Seller, as the “Trustee”, should not be doing a power of attorney. He has a specific role to fulfill and responsibilities to oversee. His capacity is not as an “individual” who can just delegate to someone else to handle things when he is unavailable.
The Trust was prepared by his Trust attorney. Only he, the Attorney, has the legal background to determine if it should or can be done. Or perhaps the Attorney will take on the responsibility and do the power of attorney? As an Escrow Officer who is handling the sale of this Trust asset, I do not want the responsibility of preparing such a document. And if any power of attorney is used, it has to be approved by the Title Company. They need to make sure there will be no future issues or liabilities to insure the sale by reason of using a power of attorney.
EDUCATIONAL MOMENT:
Here are two other scenarios that have been asked:
Can the Seller amend the Trust by removing himself as Trustee and appoint someone else as Trustee for the time period needed? Sure. Talk to the attorney to draw up such an amendment to the Trust. But guess what – that new Trustee would then have all the responsibilities to handle the Trust, if it remains “Revocable”, including the right to sell the property, change the Beneficiaries, and change the disposition of all the other assets in the Trust. Is that what the original Trustee wants? That’s pretty drastic. There are so many possible future unintended consequences to such a move.
How about if the Seller takes the property out of the Trust so that it is under his name as an individual and then gives the power of attorney to someone else? That is doable, but it deserves serious consideration beforehand. Putting his property in the Trust is specifically to provide for asset and estate protection should something happen to him. If the Seller will be traveling, that is an even bigger concern. What if something should happen to him while he was traveling and he passes away? Not only will that power of attorney become invalid if he has died, but his property is no longer part of the Trust and will be subject to Probate – which is probably one of the most important reasons why he put it in the Trust to begin with, so that it IS NOT subject to Probate…
Finally, a reminder – If you must have a power of attorney, let your Escrow Officer and the Title Company know so that they can get approvals for its use. Oh, and if it is for a Borrower/Buyer who is trying to get a new loan, his Lender will need to approve it, too.
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~ The “Hmmm” of the Month ~
Thinking of selling your home this year?
Zillow’s Survey of Front Door Colors best to attract buyers
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~ Quote of the Month ~
“The present is all we have to live in. Or to lose.”
~Marcus Aurelius~
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My YouTube Offering for the Month –
Giving a Power of Attorney is an act of faith.
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You Have Questions? We Have Answers!
Juliana Tu, CSEO, CEO, CBSS, CEI, SASIP
“Escrow is my FOREMOST language!”
Advance Disclosure:
The opinions expressed in this blog are solely the author’s.
Your comments and viewpoints are always welcome.
Info @ VivaEscrow.com