In a trust arrangement, a settlor transfers property to\nanother person (the trustee) for the benefit of a third (the beneficiary). <\/p>\n\n\n\n
Because the trust is not a person, title to any real\nproperty transferred to the trust should be vested in the name of a trustee on\nthe trust\u2019s behalf. In most living trusts, the settlor serves as trustee. <\/p>\n\n\n\n\n\n\n\n
To transfer real property out of trust, the trustee executes\na deed. In Alabama, this task is accomplished using a statutory warranty deed,\ncodified at Ala. Code \u00a7 35-4-271. Instead of a general warranty deed, which\nprotects the grantee against any claims against the title, Alabama\u2019s statutory\nwarranty deed contains a limited or \u201cspecial\u201d warranty, which reduces the\ngrantor\u2019s liability, making it more appropriate for most trust transactions.<\/p>\n\n\n\n
Whereas the grantor of a general warranty deed warrants the\nquality of title against the claims of all persons, the grantor of a statutory\nwarranty deed warrants only against claims which stem from the duration that he\nheld the title, with no warranty against title defects which may arise from\nconditions that existed before they held title.<\/p>\n\n\n\n
A statutory warranty deed, identifiable by its use of the\nwords \u201cgrant,\u201d \u201cbargain,\u201d or \u201csell\u201d in the granting clause, has the same\nrequirements as any document pertaining to an interest in real property in the\nState of Alabama. The form requires the grantor\u2019s information, including the\nname of trustee and name and date of the trust; the grantee\u2019s information,\nincluding name, marital status, vesting information, and address; the full\nlegal description of the property subject to the transfer; a recitation of the\nsource of the grantor\u2019s title; and information identifying the document\npreparer.<\/p>\n\n\n\n
Recipients of a deed executed by a trustee may request a\ncertification of trust under \u00a7 19-3B-1013 to verify the trust\u2019s existence and\nthe trustee\u2019s authority to convey real property.<\/p>\n\n\n\n
All acting trustees must sign the deed in the presence of a notary public and one additional witness before recording it in the office of the probate judge for the county wherein the real property is situated.<\/p>\n\n\n\n