Including a grantee that is a trustee of an estate planning trust as an insured under the 2006 owners policy provides coverage when real estate is transferred to?

Prepare for the Maryland Title Insurance Test with targeted multiple-choice questions, including hints and explanations for each to help you succeed. Get ready to ace your exam!

Including a grantee that is a trustee of an estate planning trust as an insured under the 2006 owners policy is beneficial because it ensures that the trust and its beneficiaries are protected when real estate is transferred into the trust. Estate planning trusts are designed to manage and distribute the assets of the estate according to the wishes of the grantor, making it essential for the trustee to be covered in the event of any title issues or claims that could arise from the transfer of property.

This protection is particularly vital because the transfer of property into an estate planning trust can sometimes lead to disputes over title, claims from creditors, or challenges by beneficiaries. By having the trustee covered under the title insurance policy, it secures the title against such risks, giving confidence to both the trustee and the beneficiaries of the trust.

In summary, the inclusion of the trustee as an insured person under the policy actively provides critical coverage that safeguards the trust's real estate assets throughout its operational lifespan.

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