58a-1107. Transfer by warranty deed of real property into inter vivos trust; effect of insurance coverage. - Kansas Statutes

58a-1107

Chapter 58a.--KANSAS UNIFORM TRUST CODE Article 11.--MISCELLANEOUS PROVISIONS

      58a-1107.   Transfer by warranty deed of real propertyinto inter vivos trust; effect of insurance coverage.(a) The transfer by warranty deed of real property into aninter vivos trust shall not affect the coverage of any title insurance if thesettlor of such trust is and remains a beneficiary of such trust during thesettlor's lifetime.

      (b)   Upon the transfer taking effect: (1) The trustee shall be deemed to beinsured; and

      (2)   the insurance coverage for such trust shall be subject to the defenseswhich the insurance company has under the policy against the originalnamed insured.

      (c)   If the settlor is a beneficiary of such trust at the time of thetransfer, the transfer of such property into such trust shall not: (1) Affectany homestead exemption or redemption rights; or

      (2)   cause a due on sale or similar clause to be effective under a mortgage orsecurity interest.

      (d)   This section shall be a part of and supplemental to the Kansas uniformtrust code.

      History:   L. 2004, ch. 158, § 15; July 1.