Release Involving a Mortgage From a Trust


Received an unusual mortgage release.  A trust had been established and trustees named.  The trustees had borrowed money from the trust for a mortgage.  The settlor was deceased, the trustees were deceased and no successor trustees had been named.  The trust was being distributed to the beneficiaries.  The release we received was signed by the beneficiaries of the trust. 

With the increasing number of trusts being established, this could certainly occur again.  Listed below are the requirements to be provided to the county clerk in addition to the normal recording requirements associated with a mortgage release.

Although the items listed below are not recording requirements in the same framework as most of Chapter 382.  They are needed in order to satisfy the requirement associated with KRS 382.290(6), that the secured party (or in this case the beneficiary of the secured party) is releasing the mortgage.  County Clerks have been advised by the Attorney General’s office and Revenue Department that they are allowed to request information to satisfy the clerk that a document is recordable.

The release would need the following to be added to the document: 
• Certificate of Trust, signed by the beneficiaries stating the name of the trust, all trustees, all beneficiaries.  Must be subscribed and sworn. 
• Copy of the first page of the trust
• Copy of the Signature page of the trust
• Added as an exhibit – an Affidavit signed by the beneficiaries (must be subscribed and sworn) that includes the following:
o Name of the deceased settlor (originator of trust)
o Date of the deceased settlor’s death
o The marital status of the settlor’s and, if married the name of the surviving spouse and his or her mailing address.
o The place of residence of the deceased settlor at time of death
o The names, ages and address, as far as is known, of each beneficiary
o Names of trustees and successor trustees and their date of death

Fee Schedule