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#2031187 - 07/31/15 07:31 PM Trust loan/bank as successor trustee - Help!!
Julie Price Offline
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Joined: Nov 2014
Posts: 17
Topeka, KS
We need to prepare a loan to a trust in which our bank (trust department) is the successor trustee. It's for a consumer purpose. The trustee is deceased, his wife was never a trustee she only consented to the trust. I want to confirm that we "send" the required forms (counseling notice, appraisal disclosure and early disclosures) to the representative in our trust department. The wife will have nothing to do with this transaction although she still lives in the home (our collateral). Is this correct? We've never had this situation before.

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RESPA
#2031195 - 07/31/15 08:02 PM Re: Trust loan/bank as successor trustee - Help!! Julie Price
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,864
Cape Cod
Some observations based on inferences:

The trust has now become irrevocable, and the bank is the trustee. The trust will now need its own TIN, if it hasn't already obtained one. I believe that under those circumstances, the loan will not be subject to Regulation Z, although the appraisal notice (Regulation B) and counseling notice (RESPA) will continue to apply.

Anyone else have thoughts?
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#2031293 - 08/03/15 02:07 PM Re: Trust loan/bank as successor trustee - Help!! Julie Price
Julie Price Offline
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Joined: Nov 2014
Posts: 17
Topeka, KS
Thank you for your response. I will also keep an eye out for additional responses as I would like to be able to have as much info as possible so I can memorialize what we did this time. Your time is very much appreciated.

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#2238435 - 06/22/20 04:50 PM Re: Trust loan/bank as successor trustee - Help!! Julie Price
Tarhe Offline
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Joined: Nov 2006
Posts: 1,290
California
We have a borrower that is the Successor Trustee of a family trust. The vesting on the property shows "John Smith, Successor Trustee of the ____". Our software does not have an option for "Successor Trustee" in the signature line, only "Trustee". Does the word "Successor" need to be there? Or are we okay without it as long as the vesting states it? Any thoughts?

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#2238436 - 06/22/20 04:55 PM Re: Trust loan/bank as successor trustee - Help!! Julie Price
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,333
Galveston, TX
More of a legal question, but a trustee is a trustee - check with your title company.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2238437 - 06/22/20 04:58 PM Re: Trust loan/bank as successor trustee - Help!! Julie Price
Tarhe Offline
Diamond Poster
Joined: Nov 2006
Posts: 1,290
California
Thank you!!

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#2238625 - 06/24/20 08:59 PM Re: Trust loan/bank as successor trustee - Help!! Tarhe
TomS Online
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Joined: Jan 2004
Posts: 315
USA
I'm no legal expert, but how can a Successor Trustee transact business on behalf of the trust? My understanding is that a Successor Trustee cannot do anything until one of the Trustees cannot, or will no longer, serve as trustee. And if that's the case here, wouldn't the Successor Trustee now be a Trustee?
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#2238626 - 06/24/20 09:06 PM Re: Trust loan/bank as successor trustee - Help!! Julie Price
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,333
Galveston, TX
Well it is a question for the title company as to why that shows in the vesting.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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