Problems You Never Want To See: Deed of Corrections

Presented by Kay M. Creasman | Virginia Counsel & VP of ORNTIC

FACTS: Joanne was gifted real estate by her ex-husband's mother, Christine Grace Anybody. The Grantee in the deed was "Joanne Xavier Anybody U A of Section Four D in the Will of William Xavier, Tr'ee." William Xavier is Joanne's brother.

PROBLEMS: 1) William Xavier isn't deceased. 2) The Will provided was for decedent, Edwin Xavier, who was Joanne's father and was probated in New York with William named as executor and trustee. Edwin never owned property in Virginia. 3) Joanne has never been the trustee of any trust.

INVESTIGATION: As with most the problems we see, one of the biggest hurdles is getting sufficient information to be able to decide what needs to be done. Even after a careful review of the title search, no one could figure out what Edwin had to do with the property in Virginia, since he never owned it and his will was probated in New York. The answer was "nothing." Edwin died in 2015 in New York and divided his assets into 4 trusts for his 4 children, with his eldest child, William, as trustee. Joanne just wanted to not have to deal with the upkeep of the property (paying taxes, keeping it insured, etc.). She wanted to add this property to her trust assets, so her older brother, William, could manage things for her. William agreed to do that for Joanne, but unfortunately, the deed was a mess.

CORRECTING THE PROBLEM:

1. A deed of correction is needed with recitals explaining what has happened. This property was never owned by Edwin Xavier. It comes from a chain of title to Joanne Xavier Anybody, who wanted it added to the trust set up by her father, with her brother, William Xavier, as trustee.

2. The grantors should be "Christine Grace Anybody, individually, and Joanne Xavier Anybody, trustee."

3. The grantee is the deed of correction should be "William E. Xavier, Trustee of the Edwin E. Xavier Trust for the benefit of Joanne Xavier Anybody."

4. Recitals should include these facts:

a) When Joanne was deeded title to the property from Christine, Joanne wanted the title added to the trust established for her benefit by her father, so her brother, William, as trustee, would take care of everything.

b) The property was never owned by her father, Edwin. His will has no impact on the ownership of the property in Virginia.

c) When the deed to Joanne was done, it incorrectly named the Will as "William's Will" and William is still living. It should have been named "Edwin's Will."

d) The deed also should have named William as trustee, not Joanne.

e) A Deed is necessary to correct the errors and, for her convenience, to add the powers of trustee in the deed.

5. If Christine has passed away, we would need to determine from her estate documents who is required to sign the Deed on her behalf.

6. Have the Deed recorded.

7. Have William, as trustee, sign the Deed to the new purchasers. You may need to deal with William instead of Joanne to get this resolved.