A fiduciary deed is a deed which is executed by a fiduciary. A fiduciary is a person who is authorized to handle the affairs of another person who is either unable to handle his or her affairs due to illness, incompetence, or other circumstances. In addition, a fiduciary may be appointed to oversee an estate.
A fiduciary deed works when there is a sale of fiduciary property which requires a deed in order to complete the sale. The fiduciary may have authority to sell estate property and therefore must sign all related property, including the deed.
Some legal issues arise with the use of a fiduciary deed. For instance, a fiduciary must act in the best interests of the person or estate. There may be a contest of the fiduciary’s actions where there is doubt as to whether or not the fiduciary acted in good faith when executing the deed. In addition, there may be a question as to the underlying authority of the fiduciary to sell the property. There are also issues with Fiduciary Deed Tax to be aware of.
If you are seeking to enter a transaction which involves a fiduciary deed, it is a good idea to consult with an experienced real estate attorney. The attorney can not only review the matter and advise whether it is prudent to continue with the transaction, but also the attorney can ensure that your rights are adequately protected in the real estate matter.