- March 28, 2019
- All California Issuing Offices
- UNDERWRITING - Certification of Trusts
Although obtaining a full copy of a Trust is always preferred, California Probate Code Section 18100.5 (Code) alternatively permits the use of a Certification of Trust (Certification). The Code specifically allows for Stewart Title Guaranty Company’s (STG) “reliance” on the truthfulness of the matters stated therein by relying upon the Trustee(s) to bind the trust. STG requires a completed Certification. Waivers or modifications to the Certification require prior written approval of an STG Underwriter.
STG has amended the California Certification (See attached form) based upon a recent review of the Code and its claims and litigation experience. The significant changes to the Certification are as follows:
(1) Referring to the Trustee(s) as the “currently active” Trustee(s), to conform to the actual language of the Code;
(2) Requesting information regarding all “currently active” Trustee(s) and requiring that all “currently active” Trustee(s) sign the Certification. If the Certification is not signed by all “currently active” Trustees, an explanation is required. Acceptance of the Certification without signatures from all “currently active” Trustee(s) requires review and approval of a STG Underwriter.
(3) Pending liens or judgments against the Trust and its Settlors; and
(4) Pending or filed lawsuits against the Trust and its Settlors or any similar lawsuits settled in the preceding three years.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.