Title company won’t disburse (Land Trust)

Member since 2022 · 1 post · 0 votes

Just recently sold a house that was owned by my land trust which I am 100% beneficiary of and I am also the trustee of. As the trustee and as the trust documents state I am directing that the title company disperse all the funds to me personally as the 100% beneficiary and the title company is refusing and will only make the check out to the name of the trust.
as you may or may not know land trusts are not required to have a bank account or an EIN. Does anyone have experience with this ?

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Ghassan Jabali
Member since 2025 · 143 posts · 90 votes
1y
Hello Adam,
I hope you're well. I'm sorry to hear about the situation. That is frustrating. Some escrows and title companies will require that a Trust have a bank account and that they can only disburse the funds to that Trust account per their internal policies. We have heard of it happening every now and then. If they are refusing to disburse the funds to you, then you could open up the trust bank account, using your own Social Security Number, since you are the Trustee of the Trust.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
1y
The reasons for this are quite simple.
Who knows whether or not the documents you have provided are legit or even the most recent? Here's how this plays out... title company disburses to you directly, the true beneficiaries appear months later and their funds are gone. Guess who they sue?
Cutting the check to the trust/owner of record eliminates the potential liability for the title company.
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