deed of assignment from trustee to beneficiary

Deed of Trust

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What Is a Deed of Trust?

A deed of trust, also called a trust deed, is a legal agreement made at a property's closing. It is a type of secured real estate transaction used in some states in place of a mortgage. The individual purchasing a property and a lender make this agreement, which states that the property buyer will repay a loan. A third party, known as a trustee, holds the property's legal title until the loan gets paid in full.

A deed of trust is the security for a loan and gets recorded in public records. Some states will require a borrower to sign a deed of trust to take out a home loan, much like other states require signing a mortgage. Fundamental differences exist between deeds of trust and mortgages, however. For example, a deed of trust requires more people to be involved in the property sale than a mortgage would. Only a mortgage gets executed through the judicial system.

What Must a Deed of Trust Include?

To be considered a legally binding document, any deed of trust needs to cover several critical details. Required information includes the following:

• Original loan amount
• Description of the property used as collateral or security ( here is an article about using collateral for a loan)
• Names of all parties involved (such as trustor, beneficiary, and trustee)
• The inception date of the loan
• The maturity date of the loan
• Any fees, such as late fees
• Provision and requirements of the mortgage
• Legal procedures in case of default, such as a power of sale clause ( here is an article about power of sale)
• Acceleration and alienation clauses to explain when the homeowner is considered delinquent or what happens when the individual sells the property
• Any riders with clauses such as terms of an adjustable-rate mortgage or prepayment penalties

Who Is Involved With a Deed of Trust?

Three parties must be involved with any deed of trust:

• Trustor: This party is the borrower. A trustor is sometimes called an obligor.
• Trustee: As a third party to a deed of trust, the trustee holds the property's legal title.
• Beneficiary: This party is the lender.

A trustee represents neither the borrower nor the lender. Instead, the trustee is an entity that holds the power of sale in case a borrower defaults. The trustee is typically a title or escrow company.

How Does a Deed of Trust Work?

A borrower gives a lender one or more promissory notes in exchange for the deed of trust. Promissory notes are documents that the borrower signs which state the borrower's promise to pay back a debt. The promissory note will contain information such as the interest rate along with other obligations of the agreement.

After the borrower pays the deed in full, the trustee will reconvey the property to its buyer. A promissory note is marked as paid in full once the buyer pays the loan entirely, and the property buyer receives the deed.

A trustee may file a notice of default if the borrower does not pay following the terms of the promissory note. A trustee may also substitute a different trustee for handling foreclosure.

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Deed of Trust Versus Mortgage

A deed of trust and a mortgage serve a similar purpose, but some key distinctions exist between the two types of legal documents.

Differences Between Deeds of Trusts and Mortgages

Significant differences between the two documents include the following:

• Foreclosure type: The foreclosure type a property owner faces will depend on whether the property owner has a deed of trust or mortgage. Someone who has a deed of trust typically faces a nonjudicial foreclosure, while a lender will need to go through the courts if a mortgage comes into play.
• Expense and length of foreclosure process: Since a lender will have to seek judicial foreclosure to take back a property using a mortgage loan, a mortgage generally takes more money and time for foreclosure proceedings. As a result, mortgage lenders tend to use deeds of trust in states that allow them. A lender will almost always spend less time and incur lower costs reclaiming a property when using a deed of trust instead of a mortgage.
• Parties involved: Only two parties, a borrower and a lender, are engaged in a mortgage contract. A deed of trust has a trustee, the neutral third party, involved in addition to the borrower and lender.

Similarities Between Deeds of Trusts and Mortgages

The two agreements also have a few significant similarities, including:

• Both agreements are distinct from loans: Neither a deed of trust nor a mortgage is a home loan. The loan states that a property owner will pay back a set amount of money to a lender, while both a deed of trust and a mortgage place a lien on a property.
• Both agreements allow for foreclosure: Both a deed of trust and mortgage give a lender a method of taking back a property via foreclosure. These agreements essentially state that if the borrower does not follow the loan terms, the lender can put the property into foreclosure.
• State law dictates both types of agreements: Both mortgages and foreclosure deeds are subject to state laws. The specific type of contract a lender must use will depend on what is legal in a particular state.

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Deed of Trust Versus Promissory Note

A deed of trust often requires a promissory note, but the promissory note is a specific document type. While a deed of trust describes the terms of debt as secured by a property, a promissory note acts as a promise that the borrower will pay the debt.

A borrower signs the promissory note in favor of a lender. The promissory note includes the loan's terms, such as payment obligations and the loan's interest rate. However, although the promissory note is usually a separate document, both a deed of trust and a mortgage can be legally considered a type of promissory note.

During the term of a loan, a lender keeps the promissory note, and the borrower only has a copy of the note. Once the borrower pays off the loan, the promissory note is marked as "paid in full." Then, the borrower receives the note with a recorded reconveyance deed.

Can You Use a Deed of Trust Anywhere?

State law governs the use of both deeds of trust and mortgages. Some states only legally allow mortgages, while other states only allow lenders to use deeds of trust. A few states will allow either type of contract. In these states, the lender gets to choose the type of agreement a borrower receives. Some states use neither mortgages nor deeds of trust but instead use other contracts such as security deeds for loan transactions to give lenders a security interest in the property.

Since state laws vary regarding the type of document you can use, it's always essential to consult with an experienced lawyer to discuss legal options and your state's requirements. A lawyer can also help ensure that you create and use a legally binding document that protects you in your specific situation regarding real estate transactions for residential or commercial property.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

Need help with a Deed of Trust?

Meet some of our deed of trust lawyers.

At Barker Law, we provide clients with expertise in contract drafting and review, outside general counsel services, negotiation, commercial litigation, and regulatory navigation. We confidently handle transactional and regulatory matters for businesses and individuals. As our feedback shows, we excel at meeting and exceeding our clients needs.

My name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.

Advised startups and established corporations on a wide range of commercial and corporate matters, including VC funding, technology law, and M&A. Commercial and Corporate Matters • Advised companies on commercial and corporate matters and drafted corporate documents and commercial agreements—including but not limited to —Convertible Note, SAFE, Promissory Note, Terms and Conditions, SaaS Agreement, Employment Agreement, Contractor Agreement, Joint Venture Agreement, Stock Purchase Agreement, Asset Purchase Agreement, Shareholders Agreement, Partnership Agreement, Franchise Agreement, License Agreement, and Financing Agreement. • Drafted and revised internal regulations of joint venture companies (board of directors, employment, office organization, discretional duty, internal control, accounting, fund management, etc.) • Advised JVs on corporate structuring and other legal matters • Advised startups on VC funding Employment Matters • Drafted a wide range of employment agreements, including dental associate agreements, physician employment agreements, startup employment agreements, and executive employment agreements. • Advised clients on complex employment law matters and drafted employment agreements, dispute settlement agreements, and severance agreements. General Counsel • As outside general counsel, I advised startups on ICOs, securities law, business licenses, regulatory compliance, and other commercial and corporate matters. • Drafted or analyzed coin or token sale agreements for global ICOs. • Assisted clients with corporate formations, including filing incorporation documents and foreign corporation registrations, drafting operating and partnership agreements, and creating articles of incorporation and bylaws. Dispute Resolution • Conducted legal research, and document review, and drafted pleadings, motions, and other trial documents. • Advised the client on strategic approaches to discovery proceedings and settlement negotiation. • Advised clients on employment dispute settlements.

Emmanuel K.

I am a corporate Attorney licensed in the state of Georgia and Ghana. My professional career started in 2016 as a litigator in a private law firm in Ghana. Subsequently in 2018, I moved in house to work for the University of Ghana and this is where my corporate transactional work experience began. Since coming to the US in 2019, I have gained significant transactional experience through internships at Verizon and Tricentis (a software testing company) during law school at UGA. Since graduating from UGA law school, I have worked as a corporate transactional attorney of an AmLaw 200 firm. In that role, I helped foreign companies entering the US market to establish a presence and comply with applicable corporate laws while doing business. I also assisted customers and service providers in the software and technology industry by reviewing SaaS and similar contracts. Also, I helped energy utilities in the renewable energy space navigate regulatory and policy issues and establish contractual business relationships through contract reviews.

Merry Kogut is a licensed attorney based in Washington State who has been a legal expert on JustAnswer since 2008 specializing in employment law, consumer protection and discrimination issues. She has been an attorney handling WA State phone consultations for Arag Legal Insurance since April, 2023. She has also been an attorney in private practice since 1986, and was in-house legal counsel for multiple WA State government agencies. She brings nearly 50 years combined legal and professional writing experience. Earlier in her career, Merry served as a law clerk for the Washington State Court of Appeals, and as a discrimination specialist, investigator and legislative liaison. She also helped establish the “Legal Writing Institute,” a national association of legal writing instructors and administrators. Merry earned her law degree from the Seattle University (formerly University of Puget Sound) School of Law.

Helping small business owners meet their legal needs.

Mr. McElvenny has extensive experience handling and developing strategy for complex commercial and real estate cases. He’s drafted hundreds of complaints ranging from simple breaches of contract to complex commercial claims including breach of fiduciary duty, constructive trusts and misappropriation of trade secrets. He has an excellent record in trial, arbitration and mediation. He also has significant experience in motion practice in both state and federal court. Through his work in corporate law, Mr. McElvenny has developed considerable experience with Limited Liability Company member disputes and general corporate governance. He’s drafted a number of industry-specific documents such as Operating Agreements (for Limited Liability Companies), commercial leases, settlement agreements and employment contracts. Mr. McElvenny has also represented criminal defendants in felony matters and assisted in the defense of civil matters arising from alleged SEC violations. He has represented individuals appearing before the Illinois Department of Professional Regulation as a result of SEC proceedings. After graduating with a B.A. in Philosophy, Mr. McElvenny proceeded from Loyola University-Chicago to DePaul University College of Law, receiving his JD from that institution in 2002. In 2010, he earned his Master’s of Science in Accounting from Loyola University-Chicago’s Graduate School of Business. Mr. McElvenny was selected to Illinois’ Super Lawyers Rising Stars in 2010, 2012 and 2013.

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A Deed of Trust can be Assigned Apart from the Note, and that often occurs just before a foreclosure. But What Does That Mean? Not Much, the Deed of Trust is Inseparable from the Note

Notes and Deeds of Trust are often assigned to different parties. The question posed is what happens if the Deed of Trust alone is assigned ? A typical assignment of the Deed of Trust alone will purport to assign “all beneficial interest under that certain Deed of Trust dated xyz..” But the long-established law in California is clear: the beneficial interest under a Deed of Trust is held by the party who holds the Note (or is entitled to enforce it), without regard to the assignment of the Deed of Trust .

The subject was again addressed by the California Courts in Domarad v. Fisher & Burke, Inc. (1969) 270 Cal. App. 2d 543 ). The Court noted that a deed of trust is a mere incident of the debt it secures and that an assignment of the debt carries with it the security. “The deed of trust is inseparable from the debt and always abides with the debt, and it has no market or ascertainable value, apart from the obligation it secures and that a deed of trust has no assignable quality independent of the debt, it may not be assigned or transferred apart from the debt, and an attempt to assign the deed of trust without a transfer of the debt is without effect. (emph. added)”

In Stockwell v. Barnum ((1908) 7 Cal. App. 413) the Court stated that this Code “is wholly foreign to deeds of trust, which, instead of creating a lien only, as in the case of a mortgage, passes the legal title to the trustee, thus enabling him in executing the trust to transfer to the purchaser a marketable record title. It is immaterial who holds the note. The transferee of a negotiable promissory note, payment of which is secured by a deed of trust whereby the title to the property and power of sale in case of default is vested in a third party as trustee, is not an incumbrancer to whom power of sale is given…” Stockwell @ 417.

And more recently “it has been established since 1908 that this statutory requirement that an assignment of the beneficial interest in a debt secured by real property must be recorded in order for the assignee to exercise the power of sale applies only to a mortgage and not to a deed of trust.” ( Calvo v. HSBC Bank USA, N.A. (2011) 199 Cal.App.4th 118 , 122.)

Why is that? There is a technical difference between the two security instruments. The mortgage only involves two parties –the borrower who grants the power of sale to the lender, and the lender who then holds the beneficial interest in the mortgage plus the power of sale. A deed of trust, on the other hand, involves three parties: the borrower, the lender, and the trustee who is granted conditional title to the encumbered property as well as the power of sale.

Thus, the deed of trust may thus be assigned one or multiple times over the life of the loan it secures. But if the borrower defaults on the loan, only the current beneficiary may direct the trustee to undertake the nonjudicial foreclosure process. “[O]nly the ‘true owner’ or ‘beneficial holder’ of a Deed of Trust can bring to completion a nonjudicial foreclosure under California law.” Yvanova v. New Century Mortgage (62 Cal. 4th 919) (2016)

An Alternative The Commercial Code also provides a mechanism for recording an assignment of the security if there has been an off-record transfer of the note but no recorded assignment of the deed of trust or mortgage. The buyer of the note can record a copy of the transfer agreement whereby the note was acquired, together with a sworn statement that a default has occurred, and in that event may proceed with a nonjudicial foreclosure. ( Cal. Com. Code, § 9607, subd. (b))

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Naming a trustee in your deed of trust

If you're using a deed of trust to secure borrowed money, you need to understand the role of a trustee. Find out who can play this vital role in your real estate transaction.

Ready to start your estate plan?

by   Edward A. Haman, Esq.

Edward A. Haman is a freelance writer, who is the author of numerous self-help legal books. He has practiced law in H...

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Updated on: February 6, 2023 · 2 min read

Using a deed of trust

Commercial lenders and private transactions.

If you use a deed of trust, either to purchase real estate or to borrow money using your property as collateral, a proper trustee must be part of the transaction. Most states that commonly use deeds of trust instead of mortgages have laws regarding the qualifications of the trustee.

A deed of trust is a legal document used in a real estate transaction either when the purchaser is borrowing funds for the purchase or when an owner of real estate borrows money and uses the property as collateral for the loan. While most states usually use a mortgage instead, a deed of trust is commonly used in some states, so check local laws to find out what is applicable in your situation. Your bank, savings and loan, credit union, or a local title insurer or real estate broker may also be able to give you this information or even help you find a trustee.

A deed of trust involves three parties: the borrower, the lender, and the trustee. In a deed of trust, the borrower is called the trustor and the lender is the beneficiary. The trustee holds title to the property until the trustor has fully repaid the loan to the beneficiary, at which time the lender notifies the trustee, who then transfers full title of the property to the trustor.

Although deeds of trust are sometimes called mortgages, the two documents are actually quite different. With a mortgage, there are only two parties: the borrower, known as the mortgagor, and the lender, or mortgagee. The borrower holds title to the property and the lender has a lien on the property until the loan is fully repaid, at which time the lender executes and records a release of the mortgage.

Deeds of trust are usually preferred by lenders since they may offer simpler foreclosure procedures in the event of default by the borrower.

If you borrow from a commercial lender, it is most likely that the lender will determine the trustee, which is typically a title company, professional escrow company, or other company in the business of serving as a real estate trustee. Sometimes a real estate broker or an attorney serves in this role.

Some states have laws governing who may or may not serve as a trustee in a deed of trust. Generally, the trustee must be an attorney, title insurance company, trust company, bank, savings and loan, credit union, or other company specifically authorized by law to serve as a trustee. Other states have no limitations. Colorado has a public trustee designated in each county for this purpose.

If you borrow from the seller of the property or another private party, you and the lender need to agree upon a third-party trustee. As with a commercial lender, you may be able to use a title company, escrow agent, real estate broker, or attorney for this purpose.

Whether your trustee is a person or company, you need to make sure they can be relied upon to act impartially and to fulfill the necessary duties and responsibilities. Assistance with property transfers may also be obtained from an online service provider .

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Drafting a Deed of Assignment

I have been instructed to prepare a Deed of Assignment in respect of two investment bonds put into effect in 2015. It is now clear they were incorrectly set up by the financial adviser, so that the Trustee has the benefit personally, rather than holding as Trustee. My question is, do I need to make any reference to this in the Deed?

Changes to investment bonds is typically undertaken with the provider. They usually have they’re own paperwork.

I’d contact the provider first, I’m assuming you wish to make changes to the beneficiaries.

Richard Bishop PFEP

Hi Richard.

Thanks for responding. In this case its the insurance company that referred the matter to us, I can only think its perhaps because it was their mistake initially and they are paying our costs that they have asked us to do it.

Gail Weston

Is this a bigger issue than just drafting a deed of assignment?

If the 2015 assignment effectively gave the bonds to the intended trustee personally, might not the assignment into trust be considered a settlement by them for IHT purposes, etc.?

If the 2015 assignment had the wrong effect I wonder if it should be remedied by an application to court for rectification. If the original transaction is not rectified, the mere completion of a new deed of assignment may fully utilise the “trustee’s” IHT nil rate band, significantly inhibiting their ability to conduct any IHT planning themselves. Should they die within 7 years of the new deed, their estate will be penalised if their nil rate band is no longer available as a result of what happens now.

I suggest it would be appropriate to contact HMRC before any documents are executed, to see if it will agree to look through the proposed deed to the original intention. This may seem over cautious, but I understand HMRC consistently asserts that it will not accept “rectification” of a mistake without a court order.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

Thank you. It was for that reason I thought we must have to do something to show the trustee is not making a settlement personally, but I wondered if the error could somehow be referred to in a Deed of Assignment so that it was clear.

Another member pointed out that a trust doesn’t have to be in writing (other than land) and suggested the legal owner might execute a Declaration of Trust to confirm how she holds the bonds, but making it clear that the trust was established when the bonds were first assigned to her. Could that work? Thank you for responding. I do very little trust work, but I know enough to know when to be wary and I think I might now refer this on to someone else!

Gail Weston WMB Law Ltd

What trusts would she arguably hold the bonds upon? The relevant trusts would have to have been at least ascertainable at the time of acquisition of the bonds. The only one of the vital Three Certainties here seems to have been the subject-matter. It is a stretch to conclude that she originally acquired as trustee unless she did so knowingly as such and beyond a vague understanding (e.g. as a constructive trustee, when it would be a key part of the analysis to be able to identify the beneficiary also). If it appears so definitively that she took originally as beneficiary, however mistakenly, retrospection is not an option. In law the Trustee is just not a trustee at all it would seem.

The remedy the law provides is rectification which is discretionary, but awarded or denied according to established principle, and subject to evidence about the nature of the mistake alleged. As Paul says, HMRC’s practice is to insist on a court order— but rarely to intervene in the process and to abide by the outcome. This is reasonable because an order will bind all persons interested, including the bond provider, whereas if HMRC just took a unilateral view (second-guessing the court’s discretion) that in theory might be successfully challenged and it might not even bind the taxpayer.

A bond provider will be reluctant to pay out anyone other than the apparent legal owner or their assignee, to obtain a good discharge. Asserting that the bonds are really held on some trust is likely to spook them. Here the matter is referred by them and, without prejudice as to culpability, indicates some kind of notice of a possible trust with at least a resultant strong doubt on their part about whom to pay. An assignment apparently fixes that but is not retrospective. It still involves their taking a view that the “Trustee” has the right to act as assignor but the assignee may be the only person or persons who might otherwise contest her personal entitlement.

It is not clear whether there is recourse against the financial adviser or bond provider (or admission of liability or creditworthiness) or precisely whose mistake is alleged to be operative and why, or the value at stake. Indeed it is not clear who is your client and what are your instructions. The bond provider may be paying and be the client for the mechanical drafting but it seems the “Trustee” is the likely client for the advice as the intending assignor. Is there a conflict?

Jack Harper

Thank you for your response. Sorry, I probably should have given more detail. The Trustee is my client. She was referred to me by a Wealth Management Company, who are paying her costs. She holds on the trusts of her late sisters Will for minor beneficiaries and took advice from them the company on where to invest. The trust funds were subsequently invested in two Bonds with that Company, but the clients new adviser has now spotted that apparently the Bonds were set up as though she herself was the owner and beneficiary, instead of holding as Trustee.

In those circumstances there must be a strong inference that she is a constructive trustee of the bonds. She has used trust funds to subscribe for the bonds. Equity would not permit her to hold them otherwise than on the existing Will trusts. If she is the sole trustee an assignment is somewhat over the top. Although you can assign to yourself in a different capacity here she would be a trustee on both sides, constructive as assignor and appointed as assignee. I suggest all she needs is to receive positive legal advice that she needs to do nothing and why. Even appointing a co-trustee just for a meaningful assignment seems excessive if the Will trust is not one of land and if is not considered desirable otherwise e.g. to secure trusteeship succession.

In agreement with Jack, as the individual knows the terms on which they are supposed to be holding the bonds (here, the trusts which are set out in the Will), the individual can execute a Declaration of Trust stating that. Similarly, I would recommend a second trustee - indeed, the terms of some Will trusts require there to be two trustees for the exercise of certain powers. If a second trustee is going to be added, the Deed of Assignment (from “Trustee A” to “Trustee A and Trustee B” could set out initially that Trustee A holds the bonds on the trusts of the Will, before the assignment to A&B “… to hold on the terms of those trusts…” (or similar). It is worth being absolutely sure that, at the time of the original investment, there was no intention that the bonds (or the funds used to invest in them) should belong beneficially to A. Gail says that this was not the intention, but any evidence of that (eg correspondence, attendance notes, etc) would be useful to keep should the position be queried in the future.

Paul Davidoff New Quadrant

I would only add to Paul’s sound comments and action plan that if she used trust funds to subscribe she would hold the bonds as a constructive trustee even if she had had the actual intention of benefiting personally

Thank you both. That way makes sense to me. There was never any intention of benefitting personally. Until learning otherwise, she believed the trust funds were rightly invested for her nieces. As you suggest I will see what paperwork exists from the end of the administration period and proceed as you suggest.

Many thanks. Gail Weston

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Do Trust Beneficiaries Pay Taxes?

Lea Uradu, J.D. is a Maryland State Registered Tax Preparer, State Certified Notary Public, Certified VITA Tax Preparer, IRS Annual Filing Season Program Participant, and Tax Writer.

Beneficiaries of a trust typically pay taxes on the distributions they receive from a trust's income, rather than the trust paying the tax.

However, beneficiaries aren't subject to taxes on distributions from the trust's principal, the original sum of money put into the trust.

When a trust makes a distribution, it deducts the income distributed on its tax return and issues the beneficiary a tax form called a Schedule K-1 . The K-1 indicates how much of the beneficiary's distribution is interest income versus principal and how much the beneficiary must claim as taxable income when filing taxes.

Key Takeaways

• Funds received from a trust are subject to different taxation than funds from ordinary investment accounts.
• Trust beneficiaries must pay taxes on income and other distributions from a trust.
• Trust beneficiaries don't have to pay taxes on returned principal from the trust's assets.
• IRS forms K-1 and 1041 are required for filing tax returns that receive trust disbursements.

Understanding Trusts and Beneficiaries

A trust is a  fiduciary  relationship whereby the trustor or grantor gives another party, the trustee , the right to hold property or assets  for the benefit of a beneficiary. Trusts are established to provide legal protection and safeguard assets, usually as part of estate planning . Trusts can ensure assets are properly distributed according to the grantor's intentions. Trusts can also help reduce estate and inheritance taxes and avoid probate .

There are two major types of trusts: the  revocable trust , which can be changed or closed during the grantor's lifetime, and the irrevocable trust , which can't be amended or closed after it has been opened. There are also trusts that become irrevocable upon the grantor's death. Varying tax rules apply to beneficiaries, depending on whether the trust is revocable or irrevocable and the type of income the trust receives.

The trust must pay taxes on any interest income it holds and doesn't distribute past year-end. The interest income the trust distributes is taxable for the beneficiary who receives it.

Interest vs. Principal Distributions

When trust beneficiaries receive distributions from the trust's principal balance, they don't have to pay taxes on this disbursement. (The principal is the original contribution plus subsequent deposits.) Gains on the trust are taxable as income to the beneficiary or the trust.

The amount distributed to the beneficiary is considered from current-year income first, then accumulated principal.  Capital gains  may be taxable for either the trust or the beneficiary.

If the income or deduction is part of a change in the principal or part of the  estate's distributable income, income tax is paid by the trust and not passed on to the beneficiary.

Trusts pay a trust tax on taxable income per the following:

The two tax forms for trusts are Form 1041 and K-1. Form 1041 is similar to Form 1040 . On this form, the trust deducts from its taxable income any interest it distributes to beneficiaries. At the same time, the trust issues a K-1, which breaks down the distribution, or how much of the money came from principal versus interest. The K-1 is the form that lets the beneficiary know their tax liability .

The K-1 schedule for taxing distributed amounts is generated by the trust and provided to the IRS. The IRS delivers the document to the beneficiary to pay the tax. The trust then completes Form 1041 to determine the income distribution deduction according to the distributed amount.

What Is a Trust Beneficiary?

A trust beneficiary is a person for whom—or for whose benefit—the trust is created . They stand to inherit at least some portion of its holdings. A beneficiary can be any recipient of a trust's largesse. Though individuals are the most typical, beneficiaries can also be groups of people or entities, such as a charity .

How Does a Beneficiary Get Money From a Trust?

Beneficiaries get money—officially known as distributions–from a trust in one of three basic ways:

• Outright distributions: Receive the funds in a lump-sum payment or two, with no restrictions.
• Staggered distributions: Receive the funds over a certain period or at periodic intervals, often in a set sum each time; or after a specific event, such as graduation from college, reaching the age of majority, or becoming a parent.
• Discretionary distributions: Receive the funds in amounts and at times determined by the trustee, often by the grantor's instructions and stated wishes.

Can a Trustee Remove a Beneficiary From a Trust?

It depends. A grantor of a revocable trust can remove a beneficiary if they have explicitly retained authority to amend a revocable trust. Thus, if the trust is a revocable living trust , and the trustee is also the grantor (the person who set the trust up), then the trustee can amend the trust at any time. Generally, the only way a trustee could remove a beneficiary is if the grantor (or creator) of the trust gave them a power of appointment: a special provision in the trust agreement that explicitly allows them to make such a change. If the trust is irrevocable, neither the grantor nor the trustee can remove a beneficiary unless the terms of the trust allow that to be done.

Whether beneficiaries pay tax on money received from a trust depends on how the distribution is classified. If the funds are deemed as coming from the trust's income—that is, earnings on its assets—the beneficiary does owe income tax on them. Whether it's taxed as regular income or capital gains depends on the nature of the funds (cash, dividends, etc.). If the funds are considered part of the trust's principal, the beneficiary doesn't owe tax because the funds are considered a return of money already taxed before it went into the trust.

Internal Revenue Service. " Form 1041, U.S. Income Tax Return for Estates and Trusts ," Page 1.

Internal Revenue Service. " Instructions for Form 1041 and Schedules A, B, G, J, and K-1, U.S. Income Tax Return for Estates and Trusts ," Page 3.

American Bar Association. " Revocable Trusts ."

Internal Revenue Service. " Instructions for Form 1041 and Schedules A, B, G, J, and K-1 ," Page 21.

Fidelity. " Trusts and Taxes: What You Need To Know ."

Office of the Law Revision Counsel of the United States House of Representatives, U.S. Code. " 26 USC 1: Tax Imposed ."

Internal Revenue Service. " Instructions for Form 1041 and Schedules A, B, G, J, and K-1, U.S. Income Tax Return for Estates and Trusts ," Pages 3, 41.

Internal Revenue Service. " Instructions for Form 1041 and Schedules A, B, G, J, and K-1, U.S. Income Tax Return for Estates and Trusts ," Page 41.

Keystone Law Group, P.C. " How to Get Trust Fund Distributions When the Trustee Is Not Paying Beneficiaries ."

Hess-Verdon. " Can a Trustee Remove a Beneficiary From a Trust? "

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The Voice of Malheur County

Public Notices from the Enterprise, for the week of June 5, 2024

More in Local government:

TRUSTEE’S NOTICE OF SALE TS No.: 173529 APN: 14484 Reference is made to that certain deed made by Toni A. Castiglione as Grantor to Malheur County Title Company, Inc., as Trustee, in favor of Mortgage Electronic Registration Systems, Inc. as designated nominee for Ranlife, Inc. as Beneficiary, dated 02/25/2022, recorded 03/03/2022, in the official records of Malheur County, Oregon as Instrument No. 2022-1057 in Book xx, Page xx covering the following described real property situated in said County and State, to wit: See attached exhibit A Exhibit A Land in Malheur County, Oregon, as follows: In Twp. 19 S., R. 44 E., W.M.: Sec. 9: All that portion of the E1/2 NE1/4 lying North and East of the Railroad right of way as conveyed to the Oregon-Washington Railroad and Navigation Company, a corp. by Deed recorded March 9, 1912, Book I, Page 504, Deed Records. Commonly known as: 3495 Greenfield Rd, Vale, OR 97918 The current beneficiary is RANLIFE, INC. pursuant to assignment of deed of trust recorded on 03/14/2024 as Inst No. 2024-0729 in the records of Malheur, Oregon. The beneficiary has elected and directed successor trustee to sell the said real property to satisfy the obligations secured by said trust deed and notice has been recorded pursuant to Section 86.752(3) of Oregon Revised Statutes: the default for which the foreclosure is made is the grantor’s failure to: Make the monthly payments commencing with the payment due on 06/01/2023 and continuing each month until this trust deed is reinstated or goes to trustee’s sale; plus a late charge on each installment not paid within fifteen days following the payment due date; trustee’s fees and other costs and expenses associated with this foreclosure and any further breach of any term or condition contained in subject note and deed of trust. 1. By the reason of said default the beneficiary has declared all obligations secured by said deed of trust immediately due and payable, said sums being the following, to wit: Principal balance of: $247,388.69; 2. Interest through 05/06/2024 in the amount of: $7,836.78 3. Escrow Advances in the amount of: $364.55 4. Total Fees in the amount of: $195.50 5. Corporate Advances in the amount of: $3,282.48 6. Together with the interest thereon at the rate 3.1250000% per annum until paid; plus all accrued late charges thereon; and all trustee’s fees, foreclosure costs and any sums advanced by the beneficiary pursuant to the terms of said deed of trust. The principal sum of $247,388.69 together with the interest thereon at the rate 3.1250000% per annum from 05/01/2023 until paid; plus all accrued late charges thereon; and all trustee’s fees, foreclosure costs and any sums advanced by the beneficiary pursuant to the terms of said deed of trust. Whereof, notice hereby is given that the undersigned trustee will on 09/16/2024 at the hour of 1:00 PM, Standard of Time, as established by Section 187.110, Oregon Revised Statutes, at the front entrance of the Courthouse, 251 B Street West Vale 97918 County of Malheur, State of Oregon, sell at public auction to the highest bidder for cash the interest in the said described real property which the grantor had or had power to convey at the time of the execution by him of the said trust deed, together with any interest which the grantor or his successors in interest acquired after the execution of said trust deed, to satisfy the foregoing obligations thereby secured (and the costs and expenses of sale, including a reasonable charge by the trustee). Notice is further given that any person named in Section 86.778 of Oregon Revised Statutes; has the right to have the foreclosure proceeding dismissed and the trust deed reinstated by payment to the beneficiary of the entire amount then due (other than such portion of said principal as would not then be due had no default occurred), together with the costs, trustee’s and attorney’s fees and curing any other default complained of in the Notice of Default by tendering the performance required under the obligation or trust deed, at any time prior to five days before the date last set for the sale. In construing this, the masculine gender includes the feminine and the successor in interest to the grantor as well as any other person owing obligation, the performance of which is secured by said trust deed; the words “trustee” and “beneficiary” include their respective successors in interest, if any. Pursuant to Oregon Law, this sale will not be deemed final until the Trustee’s deed has been issued by Prime Recon LLC. If any irregularities are discovered within 10 days of the date of this sale, the trustee will rescind the sale, return the buyer’s money and take further action as necessary. If the sale is set aside for any reason, including if the trustee is unable to convey title, the Purchaser at the sale shall be entitled only to a return of the monies paid to the Trustee. This shall be the Purchaser’s sole and exclusive remedy. The purchaser shall have no further recourse against the Trustor, the Trustee, the Beneficiary, the Beneficiary’s Agent, or the Beneficiary’s Attorney. Also, please be advised that pursuant to the terms stated on the Deed of Trust and Note, the beneficiary is allowed to conduct property inspections while there is a default. This shall serve as notice that the beneficiary shall be conducting property inspections on the referenced property. Without limiting the trustee’s disclaimer of representations or warranties, Oregon law requires the trustee to state in this notice that some residential property sold at a trustee’s sale may have been used in manufacturing methamphetamines, the chemical components of which are known to be toxic. Prospective purchasers of residential property should be aware of this potential danger before deciding to place a bid for this property at the trustee’s sale. NOTICE TO RESIDENTIAL TENANTS The property in which you are living is in foreclosure. A foreclosure sale is scheduled for 09/16/2024 (date). The date of this sale may be postponed. Unless the lender that is foreclosing on this property is paid before the sale date, the foreclosure will go through and someone new will own this property. After the sale, the new owner is required to provide you with contact information and notice that the sale took place. The following information applies to you only if you are a bona fide tenant occupying and renting this property as a residential dwelling under a legitimate rental agreement. The information does not apply to you if you own this property or if you are not a bona fide residential tenant. If the foreclosure sale goes through, the new owner will have the right to require you to move out. Before the new owner can require you to move, the new owner must provide you with written notice that specifies the date by which you must move out. If you do not leave before the move-out date, the new owner can have the sheriff remove you from the property after a court hearing. You will receive notice of the court hearing. PROTECTION FROM EVICTION IF YOU ARE A BONA FIDE TENANT OCCUPYING AND RENTING THIS PROPERTY AS A RESIDENTIAL DWELLING, YOU HAVE THE RIGHT TO CONTINUE LIVING IN THIS PROPERTY AFTER THE FORECLOSURE SALE FOR: • 60 DAYS FROM THE DATE YOU ARE GIVEN A WRITTEN TERMINATION NOTICE, IF YOU HAVE A FIXED TERM LEASE; OR • AT LEAST 30 DAYS FROM THE DATE YOU ARE GIVEN A WRITTEN TERMINATION NOTICE, IF YOU HAVE A MONTH-TO-MONTH OR WEEK-TO-WEEK RENTAL AGREEMENT. If the new owner wants to move in and use this property as a primary residence, the new owner can give you written notice and require you to move out after 30 days, even though you have a fixed term lease with more than 30 days left. You must be provided with at least 30 days’ written notice after the foreclosure sale before you can be required to move. A bona fide tenant is a residential tenant who is not the borrower (property owner) or a child, spouse or parent of the borrower, and whose rental agreement: • Is the result of an arm’s-length transaction; • Requires the payment of rent that is not substantially less than fair market rent for the property, unless the rent is reduced or subsidized due to a federal, state or local subsidy; and • Was entered into prior to the date of the foreclosure sale. ABOUT YOUR TENANCY BETWEEN NOW AND THE FORECLOSURE SALE: RENT YOU SHOULD CONTINUE TO PAY RENT TO YOUR LANDLORD UNTIL THE PROPERTY IS SOLD OR UNTIL A COURT TELLS YOU OTHERWISE. IF YOU DO NOT PAY RENT, YOU CAN BE EVICTED. BE SURE TO KEEP PROOF OF ANY PAYMENTS YOU MAKE. SECURITY DEPOSIT You may apply your security deposit and any rent you paid in advance against the current rent you owe your landlord as provided in ORS 90.367. To do this, you must notify your landlord in writing that you want to subtract the amount of your security deposit or prepaid rent from your rent payment. You may do this only for the rent you owe your current landlord. If you do this, you must do so before the foreclosure sale. The business or individual who buys this property at the foreclosure sale is not responsible to you for any deposit or prepaid rent you paid to your landlord. ABOUT YOUR TENANCY AFTER THE FORECLOSURE SALE The new owner that buys this property at the foreclosure sale may be willing to allow you to stay as a tenant instead of requiring you to move out after 30 or 60 days. After the sale, you should receive a written notice informing you that the sale took place and giving you the new owner’s name and contact information. You should contact the new owner if you would like to stay. If the new owner accepts rent from you, signs a new residential rental agreement with you or does not notify you in writing within 30 days after the date of the foreclosure sale that you must move out, the new owner becomes your new landlord and must maintain the property. Otherwise: • You do not owe rent; • The new owner is not your landlord and is not responsible for maintaining the property on your behalf; and • You must move out by the date the new owner specifies in a notice to you. The new owner may offer to pay your moving expenses and any other costs or amounts you and the new owner agree on in exchange for your agreement to leave the premises in less than 30 or 60 days. You should speak with a lawyer to fully understand your rights before making any decisions regarding your tenancy. IT IS UNLAWFUL FOR ANY PERSON TO TRY TO FORCE YOU TO LEAVE YOUR DWELLING UNIT WITHOUT FIRST GIVING YOU WRITTEN NOTICE AND GOING TO COURT TO EVICT YOU. FOR MORE INFORMATION ABOUT YOUR RIGHTS, YOU SHOULD CONSULT A LAWYER. If you believe you need legal assistance, contact the Oregon State Bar and ask for the lawyer referral service. Contact information for the Oregon State Bar is included with this notice. If you do not have enough money to pay a lawyer and are otherwise eligible, you may be able to receive legal assistance for free. Information about whom to contact for free legal assistance is included with this notice. OREGON STATE BAR, 16037 S.W. Upper Boones Ferry Road, Tigard Oregon 97224, Phone (503) 620-0222, Toll-free 1-800-452-8260 Website: http://www.oregonlawhelp.org NOTICE TO VETERANS If the recipient of this notice is a veteran of the armed forces, assistance may be available from a county veterans’ service officer or community action agency. Contact information for a service officer appointed for the county in which you live and contact information for a community action agency that serves the area where you live may be obtained by calling a 2-1-1 information service. The Fair Debt Collection Practices Act requires that we state the following: this is an attempt to collect, and any information obtained will be used for that purpose. If a discharge has been obtained by any party through bankruptcy proceedings: This shall not be construed to be an attempt to collect the outstanding indebtedness or hold you personally liable for the debt. This letter is intended to exercise the note holders right’s against the real property only. The Successor Trustee, Prime Recon LLC, has authorized the undersigned attorney to execute the document on the Successor Trustee’s behalf as allowed under ORS 86.713(8). Dated: 5/13/2024 Prime Recon LLC By: Jason L. Cotton, Attorney Prime Recon LLC 27368 Via Industria, Ste 201 Temecula, CA 92590 Phone number for the Trustee: (888) 725-4142 A-4817363 05/22/2024, 05/29/2024, 06/05/2024, 06/12/2024

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Home » Blog » Taxation and Other Aspects of Private Trusts – Overview | Strategic Considerations | Types

Taxation and Other Aspects of Private Trusts – Overview | Strategic Considerations | Types

• Blog | Income Tax |
• Last Updated on 3 June, 2024

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By Rohan Sogani

Table of Contents

• Trust Structure
• Overview of Indian Trust Act, 1882
• Strategic Considerations
• Roles of Settlor/Trustee/Beneficiary
• Type of Trusts
• Private Trusts vs. Will
• Taxation of Private Trusts
• Gift Received by Private Trusts
• Declaration of Beneficial Ownership
• Ring-Fencing of Assets
• Fema Aspects of Trusts – Overview

1. Trust Structure

2. Overview of Indian Trust Act, 1882

• Section 3 of the Indian Trust Act, 1882 defines ‘ Trust ’ as:

“an obligation annexed to the ownership of the property , arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him for the benefit of the another, or of another and the owner”.

• Trust is not a separate legal entity . It is an obligation casted on the trustee by the settlor to employ the trust assets for the benefit of the beneficiaries.
• Settlor/Author is the person who settles the trust . He can be a trustee or a beneficiary as well.
• Trustees are the persons who are bestowed with the responsibility of managing the assets of the trust and rights and powers for wealth distribution.
• Beneficiaries are the persons for whom the trust has been settled.

3. Strategic Considerations

• Controlled Succession Planning
• Biz Managed Professionally
• Asset protection
• Creating single pool of investment
• Maintenance of the Family
• Passing of wealth from generation to generation

4. Roles of Settlor/Trustee/Beneficiary

4.1 role of the settlor.

• Settlor has no role to play in the operations of the trust
• Settlor to decide on the Original Trustee, the trust framework and initial beneficiaries of thrust

4.2 Duties & Powers of the Trustee

• To operate the trust as per the objects of the trust
• To buy/sell property and invest the trust money and monitor the investments
• To distribute income/assets of the trust
• To get reimbursement of expenses incurred while executing objects of the trust
• To add or remove beneficiary
• To add further Trustees

4.3 Entitlements to the Beneficiary

• Enjoy profits of the trust property
• To expect the trustee to properly protect and administer Trust property
• To compel the trustee to perform his duty properly

5. Type of Trusts

• Revocable Trust v. Irrevocable Trust
• Oral Trust v. Written Trust
• Testamentary Trust v. Non-testamentary Trust
• Specific Trust v. Discretionary Trust

6. Private Trusts vs. Will

7. taxation of private trusts.

Rates applicable to individuals will be charged if all the following conditions are satisfied:

• Trust is declared by a settlor by way of a Will; and
• Trust is declared exclusively for the benefit of any dependent relative; and
• Such Trust is the only trust so declared by him

Rates applicable to AOP will be charged in a case where:

• None of the beneficiaries:
• has taxable income exceeding the Basis Exemption Limit; or
• is a beneficiary under any other private Trusts
• Where the relevant income or part of the relevant income is receivable under a trust declared by any person by Will and such trust is the only trust so declared by him;

8. Gift Received by Private Trusts

• Taxability in the Hands of Donor:  Section 47(iii) – Transaction Not regarded as “Transfer”
• Taxability in the Hands of Trust/Donee:
• “Relative” in case of Trust
• Section 56(2)(x): Provided that this clause shall not apply to any sum of money or any property received— (I) from any relative; or… (X) from an individual by a trust created or established solely for the benefit of relative of the individual;
• Clause (i) of proviso – Relationship to be tested from recipient’s perspective i.e. it needs to be tested whether the donor qualifies as a ‘relative’ from the perspective of recipient
• Clause (x) of proviso – For trusts, relationship needs to be tested from donor’s perspective and not from recipient’s perspective i.e. it needs to be tested whether beneficiaries for whose benefit the trust is settled qualify as ‘relative’ from the perspective of donor

9. Declaration of Beneficial Ownership

Where the member of the reporting company is a trust (through trustee), and the individual:

10. Ring-Fencing of Assets

• Private Trusts has emerged as an effective vehicle for succession planning for BUSINESS HOUSES.

• Transfer of Personal Assets to Trust, so that these assets can be insulated against possible future defaults of the businesses.
• Insolvency and Bankruptcy Code, 2016 has ushered new framework which provides easier mechanism for lenders to initiate recovery proceedings.
• Supreme Court in Lalit Kumar Jain vs. Union of India [2021] 127 taxmann.com 368 (SC) held that

“Guarantors obligation is not absolved for the balance amount dues due to involuntary process, i.e. by operation of law or due to liquidation or insolvency proceedings”

IBC – Impacting Transfer of Assets to Trust

• Section 164 states that any transaction entered by the bankrupt during the period of 2 years, ending the filing of application for bankruptcy, which causes bankruptcy process triggered, shall be considered as an undervalued transaction.

“In such scenario there would be heavy onus on such individual, to prove that transfer of assets/property by him to private trust was out of a bonafide arrangement .”

11. Fema Aspects of Trusts – Overview

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

• The statutory material is obtained only from the authorized and reliable sources
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Legals for June, 6 2024

NO. 30352 NOTICE OF SALE FOR STATE SCHOOL TRUST LAND    The Dept. of Natural Resources and Conservation (DNRC) will offer the following parcel of state land located in Flathead County for sale at public auction on June 27, 2024, at 1:00 PM at the DNRC Northwest Land Office located at 655 Timberwolf Pkwy Ste 1, Kalispell, Montana under terms and conditions provided herein.     Sale No. 2054  Acres: 1.231+  Legal Description: Lot 31, Rogers Lake, COS 18526, Sec. 30, T 27N-R 23W  Minimum Bid for Land: $540,000.00 No Improvements on Property  Location: LOT 31 ROGERS LAKE ROAD, KILA, MT 59920    BID PARTICIPATION  A bid packet containing an Offer to Purchase and Bid Deposit Receipt Form and Invitation to Purchase State Land at Public Oral Auction and General Terms & Conditions for Sale is available on DNRC’s website, https://dnrc.mt.gov/cabinsitesales or from DNRC upon request. All persons wishing to participate in the auction must submit proof of funds (prequalification letter or proof of cash deposits equal to at least the minimum bid plus improvements value) and a bid deposit postmarked on or before 5:00 P.M. Friday, June 7, 2024. The bid deposit must be in the form of a certified check made payable to DNRC equal to five percent (5%) of the minimum bid indicated for that parcel and submitted with a completed Offer to Purchase and Bid Deposit Receipt Form. Failure to submit the proof of funds, bid deposit or Offer to Purchase and Bid Deposit Receipt Form as provided herein will prohibit participation in the auction. All Offer to Purchase and Bid Deposit Receipt Forms and payments must be sent to: DNRC, Attn: Brent Neace, PO Box 201601, 1539 Eleventh Avenue, Helena, MT 59620-1601, (406) 444-4289 or [email protected].     TERMS OF SALE for SALE No. 2054:   1. The minimum acceptable bids for the land are the values indicated above.  2. The parcel will be sold to the high bidder of that parcel.   3. In addition to the purchase price for each parcel and the purchase of the improvement, the purchaser shall also be responsible for the following costs (if applicable to that particular sale) including, but not limited to: Advertising, Appraisal, Filing Fees, Water Right Transfers, Cost of Closing.  All inquiries, bid deposits, or requests for forms must be sent to: DNRC, Attn: Brent Neace, PO Box 201601, 1539 Eleventh Avenue, Helena, MT 59620-1601, (406) 444-4289 or [email protected].   May 16, 23, 30 and June 6, 2024 MNAXLP __________________________

NO. 30367 Montana 11th Judicial District Court Flathead County In the Matter of the Name Change of Eva Volcikova Noone: Eva Volcikova Noone, Petitioner Cause No.: DV-24-585 Dept. No.: DAN WILSON Notice of Hearing on Name Change This is notice that Petitioner has asked the District Court for a change of name from Eva Volcikova Noone to Eva Volcikova. The hearing will be on 06/11/2024 at 1:30 p.m. The hearing will be at the Courthouse in Flathead County. Date: April 24, 2024 Peg Allison Clerk of District Court By: Rachael Parra Deputy Clerk of Court / Rachael Parra May 16, 23, 30 and June 6, 2024 MNAXLP __________________________

NO. 30368 Montana 11th Judicial District Court Flathead County In the Matter of the Name Change of Christopher Jaromir Noone: Christopher Jaromir Noone, Petitioner Cause No.: DV-24-586 Dept. No.: Robert B Allison Notice of Hearing on Name Change This is notice that Petitioner has asked the District Court for a change of name from Christopher Jaromir Noone to Christopher Jaromir Volcik. The hearing will be on 06/05/2024 at 8:30 a.m. The hearing will be at the Courthouse in Flathead County. Date: April 24, 2024 Peg Allison Clerk of District Court By: /s/Rachel Faber Deputy Clerk of Court // Rachel Faber May 16, 23, 30 and June 6, 2024 MNAXLP __________________________

NO. 30425 NOTICE OF TRUSTEE’S SALE To be sold for cash at a Trustee’s Sale on October 3, 2024, at 11:00 AM at the East door of the Flathead County Justice Center, 920 South Main Street, Kalispell, MT, the following described real property situated in Flathead County, State of Montana: The land referred to herein below is situated in the county of Flathead, State of Montana and is described as follows: All that parcel of land in Flathead County, State of Montana, as more fully described in Deed Doc # 200531816260, ID# 0619350, being known and designated as follows: A tract of land situated, lying and being in the Southwest Quarter of the Northwest Quarter of Section 15, Township 28 North, Range 22, West, P.M.M., Flathead County, Montana, and being more particularly described as follows: Beginning at the intersection of the northerly boundary of State Highway No. 2 with the easterly boundary of the County Road, said point being 30.00 feet East of and 22.00 feet South of the quarter corner common to Sections 15 and 16; thence North 60°49’00” East, a distance of 350.00 feet, measured along the northerly boundary of Highway No. 2; thence North 29°11’00” West, a distance of 297.50 feet; thence West, a distance of 160.60 feet, more or less, to the easterly boundary of the County Road; thence Southerly along said boundary of the County Road; thence southerly along said boundary of the Country Road, a distance of 425.30 feet to the point of beginning. Excepting therefrom: A Tract of land in the Southwest Quarter of the Northwest Quarter of Section 15, Township 28 North, Range 22 West, P.M.M., Flathead County, Montana, more particularly described as follows: Commencing at the Northwest Corner of Section 15; thence South 01°30’07” West along the section line, a distance of 1817.01 feet to a point on the center line of a County Road; thence East, a distance of 30.00 feet to a point on the easterly Right of Way of said road; thence South 01°30’07” West along said Right of Way, a distance of 223.54 feet to a point; thence South 29°17’06” East, a distance of 285.14 feet to the point of beginning of the tract to be described; thence South 29°17’06” East, a distance of 277.27 feet to a point on the northerly Right of Way of U.S. Highway No. 2; thence North 61°02’34” East along said Right of Way, a distance of 13.08 feet to a point; thence North 29°17’06” West, a distance of 270.01 feet to a point. Thence West, a distance of 14.00 feet to the point of beginning. Tract 2A of Certificate of Survey No. 2432.  Also excepting therefrom that portion deeded to the State of Montana in Quit Claim Deed recorded August 12, 1949, in Book 300, Page 479, as Doc. No. 3823, records of Flathead County, Montana. And A tract of land in the Southwest Quarter of the Northwest Quarter of Section 15, Township 28 North, Range 22 West, P.M.M., Flathead County, Montana, more particularly described as follows: Commencing at the Northwest Corner of Section 15; thence South 01°3’07” West along the section line, a distance of 1817.01 feet to a point on the center line of a County Road; thence East, a distance of 30.00 feet to a point on the Easterly Right of Way of said road; thence South 01°30’07” West along said Right of Way, a distance of 223.54 feet to the point of beginning of the tract to be described; thence South 29°17’06” East, a distance of 285.14 feet to a point; thence West, a distance of 146.00 feet to a point on the Easterly Right of Way of a County Road; thence North 01°30’07” East along said Right of Way, a distance of 248.79 feet to the point of beginning. Tract 1A of Certificate of Survey No. 2432. The improvements thereon being known as 2385 US HWY 2 W, Kalispell, MT. By Fee Simple Deed from Jason L. McFarland and Jamie Gideon, as joint tenants as set forth in Deed Inst 200531816260, dated 11/07/2005 and recorded 11/14/2005, Flathead County Records, State of Montana. More commonly known as 2385 US Highway 2 W, Kalispell, MT 59901. Jason L. McFarland, as Grantor, conveyed said real property to Alliance Title and Escrow Corporation, as Trustee, to secure an obligation owed to JPMorgan Chase Bank, N.A., by Deed of Trust on August 9, 2012, and filed for record in the records of the County Clerk and Recorder in Flathead County, State of Montana, on September 11, 2012, as Instrument No. 201200020942, of Official Records. The Deed of Trust was assigned for value as follows: Assignee: Community Loan Servicing, LLC Assignment Dated: December 14, 2021 Assignment Recorded: December 20, 2021 Assignment Recording Information: as Instrument No. 202100043336 Assignee: Nationstar Mortgage LLC Assignment Dated: July 7, 2022 Assignment Recorded: July 7, 2022 Assignment Recording Information: as Instrument No. 202200016731 Assignee: U.S. Bank Trust National Association, not in its individual capacity but solely as owner trustee for RCAF Acquisition Trust Assignment Dated: February 14, 2024 Assignment Recorded: February 14, 2024 Assignment Recording Information: as Instrument No. 202400003090 All in the records of the County Clerk and Recorder for Flathead County, Montana. Jason J. Henderson is the Successor Trustee pursuant to a Substitution of Trustee recorded in the office of the Clerk and Recorder of Flathead County, State of Montana, on November 10, 2022, as Instrument No. 202200028529, of Official Records.  The Beneficiary has declared a default in the terms of said Deed of Trust due to the Grantor(s) failure to make monthly payments beginning November 1, 2023, and each month subsequent, which monthly installments would have been applied on the principal and interest due on said obligation and other charges against the property or loan. By reason of said default, the Beneficiary has declared all sums owing on the obligation secured by said Trust Deed immediately due and payable. The total amount due on this obligation is the principal sum of $56,123.68, interest in the sum of $1,587.44, escrow advances of $430.44, other amounts due and payable in the amount of $134.54 for a total amount owing of $58,276.10, plus accruing interest, late charges, and other fees and costs that may be incurred or advanced.  The Beneficiary anticipates and may disburse such amounts as may be required to preserve and protect the property and for real property taxes that may become due or delinquent, unless such amounts of taxes are paid by the Grantor. If such amounts are paid by the Beneficiary, the amounts or taxes will be added to the obligations secured by the Deed of Trust. Other expenses to be charged against the proceeds of this sale include the Trustee’s fees and attorney’s fees, costs and expenses of the sale, and late charges, if any.  Beneficiary has elected, and has directed the Trustee to sell the above described property to satisfy the obligation.  The sale is a public sale and any person, including the Beneficiary, excepting only the Trustee, may bid at the sale. The bid price must be paid immediately upon the close of bidding in cash or cash equivalents (valid money orders, certified checks or cashier’s checks). The conveyance will be made by Trustee’s Deed, without any representation or warranty, including warranty of title, express or implied, as the sale is made strictly on an as-is, where-is basis, without limitation, the sale is being made subject to all existing conditions, if any, of lead paint, mold or other environmental or health hazards. The sale purchaser shall be entitled to possession of the property on the 10th day following the sale.  The Grantor, successor in interest to the Grantor, or any other person having an interest in the property, has the right, at any time prior to the Trustee’s Sale, to pay to the Beneficiary, or the successor in interest to the Beneficiary, the entire amount then due under the Deed of Trust and the obligation secured thereby (including costs and expenses actually incurred and attorney’s fees) other than such portion of the principal as would not then be due had no default occurred and by curing any other default complained of herein that is capable of being cured by tendering the performance required under the obligation or to cure the default, by paying all costs and expenses actually incurred in enforcing the obligation and Deed of Trust with Successor Trustee’s and attorney’s fees. In the event that all defaults are cured the foreclosure will be dismissed and the foreclosure sale will be canceled.   The scheduled Trustee’s Sale may be postponed by public proclamation up to 15 days for any reason. In the event of a bankruptcy filing, the sale may be postponed by the Trustee for up to 120 days by public proclamation at least every 30 days.  If the Trustee is unable to convey title for any reason, the successful bidder’s sole and exclusive remedy shall be the return of monies paid to the Successor Trustee and the successful bidder shall have no further recourse.  This is an attempt to collect a debt and any information obtained will be used for that purpose.  Dated this 15th day of May, 2024. Jason J. Henderson Substitute Trustee 38 2nd Avenue East Dickinson, ND 58601 Telephone: 801-355-2886 Office Hours: Mon.-Fri., 8AM-5PM (MST) File No. MT-20160 June 6, 13, 20, 2024 MNAXLP __________________________

NO. 30430 Lori B. Miller Lori B. Miller, P.C. P.O. Box 4955 Whitefish, MT 59937 Telephone (406) 730-2752 Attorney for Personal Representative MONTANA ELEVENTH JUDICIAL DISTRICT COURT FLATHEAD COUNTY In the Matter of the Estate of    WANDA A. PLACER Deceased. Case No. DP-15-2024-0000145-IT NOTICE TO CREDITORS NOTICE IS HEREBY GIVEN that Albert R. Zimmerli has been appointed as personal representative of the above-named estate. All persons having claims against the decedent are required to present their claims within four months after the date of the first publication of this notice or said claims will be forever barred.  Claims must either be mailed to Lori B. Miller, P.C., attorney for the personal representative, return receipt requested, at P.O. Box 4955, Whitefish, Montana, 59937, or filed with the Clerk of the above Court. Dated this 3rd day of June 2024. LORI B. MILLER, P.C. By: Lori B. Miller Lori B. Miller, Attorney at Law  June 6, 13, 20, 2024 MNAXLP __________________________

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