Section 34.25.055. Conveyances to or from trusts.

   (a) A person, including a trustee, may convey real property to a trust whether or not a trustee of the trust is named as a grantee in the instrument of conveyance. A trustee of a trust may convey real property from a trust whether or not a trustee of the trust is named as a grantor in the instrument of conveyance.
   (b) In a conveyance under (a) of this section, notice of the existence of the trust does not affect the status of a purchaser as a bona fide purchaser.
   (c) Real property that is owned by a trust and that is purchased by a bona fide purchaser from a person in the person's capacity as trustee of the trust is acquired free of any claim of the beneficiaries of the trust.
   (d) Notwithstanding other provisions of law, a trust instrument may not change the effect of (c) of this section.
   (e) In this section,
        (1) "bona fide purchaser" means a person who purchases real property for value from a trust and who
             (A) has not knowingly been a party to fraud or illegality affecting the interest of persons who are parties to the purchase transaction or beneficiaries of the trust;
             (B) does not have notice of an adverse claim by a beneficiary of the trust; and
             (C) has acted in good faith in the purchase transaction;
        (2) "conveyance" means a conveyance made before, on, or after August 9, 2000;
        (3) "purchaser" means a person who acquires real property by sale, lease, mortgage, pledge, or lien, or who otherwise deals with real property in a voluntary transaction other than by making a gift;
        (4) "real property" includes an interest in real property;
        (5) "value" means acquisition of property
             (A) in return for a binding commitment to extend credit;
             (B) as security for or in total or partial satisfaction of a claim that existed before the giving of the security;
             (C) by accepting delivery of the real property under a contract that is for the purchase of the real property and that existed before the delivery; or
             (D) in return for other consideration sufficient to support a contract.

Notes

History

(Sec. 11 ch 40 SLA 2000)