Getting Started on Deed of Trust in New York: What Businesses Need to Know
Trust Deed Offers Guidance on How to Manage Assets After Death3 min read
A deed of trust, also referred to as a trust deed, is a legal document that details how a business or individual’s assets are to be managed or divided upon the death of the party in question. In the case of a business, the assets of the business are held in trust and can be used for specific purposes or given to an inheritance beneficiary. Deed of trust documents can be complex and, because of the legal ramifications of incorrect filing, are best left to experienced professionals. Businesses based in New York should become knowledgeable about the nuances of the deed of trust process in order to protect their assets.
Getting a deed of trust drafted, closed and recorded can be legally complicated and a lengthy process. Businesses who need assistance in understanding and executing the deed of trust process in New York can use the resources offered both at the state and federal levels. In particular, UpCounsel offers experienced legal counsel to business who need trusted legal advisors that understand local regulation in New York. UpCounsel's attorney community of lawyers have compiled a list of the steps in the process of getting started with a deed of trust in New York:
Step One: Fully Understand the Intent
Before the document can even be drafted, it is important to ensure a full understanding of why the deed of trust is necessary. A deed of trust pertains to a particular asset or group of assets, and these assets can be subject to different types of rights, conditions and limitations. Fully understanding the intent of the deed of trust is critical: it will dictate how the document is written and help determine whether additional documents may be needed to ensure the asset is properly protected.
Step Two: Determine Who Is Involved
Once the intent of the trust deed is established, the next step should be identifying all of the parties that need to be part of it. The trust deed must include all necessary parties that have an interest in the asset, including the trustor or party creating the trust, the trustee, the beneficiary, and any other parties associated with the asset, such as lenders or creditors.
Step Three: Create the Trust Deed
The trust deed should be created using the most current laws of the relevant jurisdiction. The trustor should also ensure that the language used in the trust deed is clear and interpretable. Because the deed of trust will be legally binding and includes financial commitments, careful consideration of each party’s responsibilities and rights should be taken into account.
Step Four: Close the Trust Deed and Submit It for Filing
Once the trust deed is created and reviewed for accuracy, the document needs to be officially “closed” in order for it to become officially valid. This means the trustor must officially sign the document in the presence of a notary public, and all of the parties involved must also execute the document. After the trust document is closed, it must be submitted to the county court for filing. This will ensure the document is recorded and is properly enforced.
Step Five: Ensure the Trust Deed Is Legally Valid
It is important for trustors to understand that they must comply with all laws and regulations when creating a trust deed. The trustor should also make sure that the deed of trust meets any state and federal requirements. Most importantly, the trustor should verify that the document is legally binding and enforceable.
Creating a trust deed in New York is a complicated and lengthy process. Businesses in New York should become knowledgeable about the nuances of the deed of trust process in order to protect their assets. For those who need assistance in understanding and executing the deed of trust process in New York, UpCounsel offers experienced and trusted legal counsel that understands local regulation.