VA Indemnity and Escrow Agreeement--Testate

Decedent Estate-Indemnity & Escrow Agreement TESTATE
Revised March 2019

 

ESTATE INDEMNITY AND ESCROW AGREEMENT

THIS AGREEMENT made in triplicate this _____ day of ___________________ 20___ by and between

_____________________________________ hereinafter called "Depositor", and STEWART TITLE GUARANTY COMPANY, its successors and assigns, hereinafter called “Insurer” and/or “Escrowee”;

WITNESSETH

WHEREAS, said Insurer has been requested to issue its policy or policies of title insurance insuring the title to property situated in __________________________________Virginia, briefly described as follows:

AND WHEREAS, said property was formerly owned by ____________________________, deceased, who died on ________________________________________,   and

WHEREAS, the Estate of said deceased has not been settled and said property is subject to debts, if any, against the estate of said deceased; and

WHEREAS, the property is subject to possible estate and inheritance taxes; and

WHEREAS, the title to said property is subject to possible appeal from the order admitting the will of said deceased to probate, or to possible suit to impeach said will, and to the possible discovery and probate of a later will of said deceased, and any claims vs. the decedent’s estate, all within the period prescribed by law; and

WHEREAS, said Insurer has refused to issue such policy without exception to the above matters, unless indemnified as herein set out;

NOW, THEREFORE, Depositor does hereby agree to indemnify said Insurer against any and all loss, costs, damage, charge, liability or expense, including court costs and attorneys' fees, which it may sustain or be put to due to the issuance of owner's or mortgagee  policies of title insurance on said property by reason of (1) there being an attempt (a) to subject said property to the payment of debts against said estate, or (b) to subject said property to the payment of estate or inheritance taxes, or (c) to appeal from the order admitting the aforesaid will to probate or institution of suit to impeach said will or the discovery and probate of a subsequent will of said deceased, all within the period prescribed by law, and/or (2) said property being (a) subjected to the payment of debts against the estate of the deceased, or (b) subjected to the payment of estate or inheritance taxes, or (c) affected by appeal from the order admitting the will to probate or institution of a suit to impeach the will or the discovery and probate of a subsequent will of said deceased, and/or (3) unmarketability of the title to said property on account of the fact that same is, or may be (a) liable for debts or possible debts against said estate, or (b) liable for estate or inheritance taxes, or possible estate or inheritance taxes, or (c) subject to the possibility of, or affected by, an appeal from the order admitting said will to probate or the discovery and probate of a subsequent will of said deceased,



INDEMNITY AND ESCROW AGREEMENT

Page Two

and

FURTHER, in consideration of the premises, the parties hereto mutually covenant and agree as follows:

As an additional security, the Depositor herewith deposits with the Insurer as Escrowee the sum of $____________________ receipt of which the Insurer/Escrowee hereby acknowledges, to be held by the Insurer subject to conditions set forth below:

(a) That said Insurer shall have the right, in the event that, in the sole and arbitrary opinion of the Insurer, it becomes necessary to apply all or part of said funds to the defense, without obligation to defend, of any claim or claims, as aforesaid, which may be asserted, or to the satisfaction of any such claim or claims, or to the establishment of the title as insured by the policies of said Insurer on account of said matters.

(b) That said amount will be held until one year and two days have expired from the death of the decedent at which time the said sum will be returned to said Depositor, less the charges, if any, of the Insurer and less any amount or amounts of said fund which may have been paid in the defense or satisfaction of any claim or claims as aforesaid, provided Insurer is furnished a certificate of one of its approved attorneys to the effect that no suit has been instituted against the estate for the payment of any debts, and provided that estate and inheritance taxes have been paid, or, the estate is not subject to such taxes, that Insurer is furnished with satisfactory "No Tax Certificate" from the proper taxing authorities and provided further that no subsequent will has been discovered and admitted to probate.

IN WITNESS WHEREOF, the parties hereto have duly signed and sealed this instrument in triplicate.

DEPOSITOR:

                                                                                       ______________________________________

STEWART TITLE GUARANTY COMPANY, INSURER

                                                                                       BY: ___________________________________

Estate Tax Identification Number or Depositor's Social Security number (to be used by Depositor for reporting to Internal Revenue Service):

 

Decedent Estate Indemnity Agreement—TESTATE
revised March 2019

ESTATE INDEMNITY AGREEMENT

 

THIS AGREEMENT made in triplicate this _____ day of ___________________ 20________ by and

between ___________________________ _____________hereinafter called "Seller" and STEWART TITLE GUARANTY COMPANY, its successors and assigns, hereinafter called "Insurer";

WITNESSETH

WHEREAS, Insurer has been requested to issue its policy or policies of title insurance insuring the

title to property situated in _____________________________Virginia briefly described as follows:

AND WHEREAS, the property was formerly owned by__________________________________

deceased, who died on ______________; and

WHEREAS, the Estate of said deceased has not been settled and said property is subject to debts, if any, against the estate of the deceased; and

WHEREAS, the property is subject to possible estate and inheritance taxes; and

WHEREAS, the title to the property is subject to possible appeal from the order admitting the will of said deceased to probate, or to possible suit to impeach said will, and to the possible discovery and probate of a later will of said deceased, and claims vs. the decedent’s estate, all within the period prescribed by law; and

WHEREAS, Insurer has refused to issue such policy without exception to the above matters, unless indemnified as herein set out;

NOW, THEREFORE, Seller does hereby agree to indemnify said Insurer against any and all loss, costs, damage, charge, liability or expense, including court costs and attorneys' fees, which it may sustain or be put to due to the issuance of owner's or mortgagee policies of title insurance on the property by reason of (1) there being an attempt (a) to subject said property to the payment of debts against the estate, or (b) to subject the property to the payment of estate or inheritance taxes, or (c) to appeal from the order admitting the aforesaid will to probate or institution of suit to impeach said will, within the period prescribed by law or (2) the property being (a) subjected to the payment of debts against the estate of the deceased, or (b) subjected to the payment of estate or inheritance taxes, or (c) affected by appeal from the order admitting the will to probate or institution of a suit to impeach the will, or (3) unmarketability of the title to the  property on account of the fact that same is, or may be (a) liable for debts or possible debts against said estate, or (b) liable for estate or inheritance taxes, or possible estate or inheritance taxes, or (c) subject to the possibility of, or affected by, an appeal from the order admitting said will to probate.

 

FURTHER, in consideration of the premises, the parties hereto mutually covenant and agree as follows:

In consideration of Insurer accepting the risk of insuring the title to the property to Seller’s purchasers, Seller herewith pays to Insurer an “extra hazardous premium” in the amount of $________________.  This premium is non-refundable, in whole or in part; Seller and insurer acknowledge and agree that the premium is not and shall not be deemed the limit of Seller’s liability in the event of a claim against the title asserted through the estate of the decedent.

 

(a) That Insurer shall have the right to pay, in the event that, in the sole and arbitrary opinion of the Insurer, it becomes necessary to the defense, without obligation to defend, of any claim or claims, as aforesaid, which may be asserted, or to the satisfaction of any such claim or claims, or to the establishment of the title as insured by the policies of Insurer on account of such matters.

(b) In the event Insurer pays any sums in defense of the title as aforesaid in paragraph (a), Insurer shall promptly notify Seller or the extent and nature of any such sum, whereupon Seller shall promptly reimburse Insurer in full for the sums so paid.

(c) Payments to the Insurer under (b) above shall be by wire, cashiers or certified check to the Seller on the demand in writing to the Insurer.

IN WITNESS WHEREOF, the parties hereto have duly signed and sealed this instrument in triplicate.

SELLER:

(SEAL)

 

(SEAL) Attest:

 

BY:

STEWART TITLE GUARANTY COMPANY INSURER

BY:



Estate Tax Identification Number or Seller's Social Security number to be used for reporting to Internal Revenue Service:

No guidelines are available for this form at this time.