Full question:
Our family trust is co- owner of a trust deed that is ready to pay off. Some of the beneficiaries in the assignment of deed of trust have passed away. How is this handled in the reconveyance?
- Category: Trusts
- Date:
- State: California
Answer:
The handling of deceased beneficiaries in a reconveyance depends on the trust's terms and specific circumstances. In California, if a beneficiary has died and 40 days have passed since their death, the gross value of their property does not exceed $100,000, and no probate has been filed, the successor may record an affidavit to confirm these conditions have been met. This affidavit must include the recording reference of the lien and a notary public's acknowledgment of the signatures.
The transfer of the debt secured by the lien is treated similarly to an assignment of the right to collect the debt. The trustee can rely on the affidavit's statements in good faith without needing to verify them. Additionally, anyone acting in good faith can rely on a recorded reconveyance executed by the successor of the deceased beneficiary (Cal. Civ. Code § 13106.5).
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.