Common Title Issues With Trust-Owned Properties 

09/07/2026 09:51 AM       Mark Goodman

Trusts have become a more common asset management option in the last few decades. Putting a property in a trust can make it easier to eventually transfer the property to someone else, it can have tax benefits and can allow for special types of property distributions upon your passing, but if the trust isn’t designed correctly, title issues can manifest, turning what was supposed to be a simpler process into a headache. 

At Commercial Partners, we frequently work with commercial investors or business owners who are considering moving their commercial property into a trust for one reason or another. They work with us because they want it done right so that there are no issues down the road. We’ve seen what can happen if the trust isn’t designed just right, and we want to help you avoid some of these issues. Below, we take a closer look at some common title issues that can develop with trust-owned properties if you’re not careful. 

Let’s explore some of the title issues that can develop if your revocable living trust isn’t designed correctly or without certain property-specific conditions in place. 

• Trustee Authority Issues - A title company will have to verify that the person signing on behalf of the trust actually has the legal authority to do so. In the wake of your passing, or when a successor trustee becomes involved, there will need to be proof showing that they have such an appointment and the authority to act. Someone may claim to have authority or assume they have it, but the title company will need proof of this authority and will only act based on the conditions of the trust. 

• Never Officially Transferred - There are more than a few steps you’ll need to take when creating a revocable living trust as part of your estate plan, and if you don’t complete all of the steps, the commercial property may never legally transfer into the trust. Working with a title services company can ensure the trust is established, legal transfers take place and ownership records match the trust documents. 

• Recording Discrepancies - Another reason why it’s so important to work with an experienced title services team for your revocable living trust is because the details are crucial when crafting the document. Minor discrepancies, recording errors, oversights and omissions, inconsistencies or misspellings can delay the enforcement of a trust. 

Connect with a title services team like Commercial Partners and take solace in knowing that your trust was designed correctly and will proceed as intended when the time comes. For more information about creating a revocable living trust or avoiding certain title issues, reach out to the team at Commercial Partners today at (612) 337-2470.