33-404. Disclosure of beneficiary; recording;
failure to disclose
A. Notwithstanding section 33-411, subsection D, every deed or conveyance of real
property, or an interest in real property, located in this state which is executed after
June 22, 1976 in which the grantee is described as a trustee or acts as a trustee shall
disclose the names and addresses of the beneficiaries for whom the grantee holds title
and shall identify the trust or other agreement under which the grantee is acting or
refer by proper description to the document number or the docket and page of an
instrument or other writing which is of public record in the county in which the property
so conveyed is located in which such matters are disclosed.
B. Notwithstanding section 33-411, subsection D, every deed or conveyance of real
property, or an interest in real property, located in this state which is executed after
June 22, 1976 by a grantor who holds title to the property as a trustee, whether or not
such capacity is identified on the document through which title was acquired, shall also
disclose the names and addresses of the beneficiaries for whom the grantor held title to
the property and shall identify the trust or other agreement under which the grantor is
acting or refer by proper description to the document number or the docket and page of an
instrument or other writing which is of public record in the county in which the property
so conveyed is located in which such matters are disclosed.
C. Notwithstanding section 33-411, subsection D, a grantee who holds title as a
trustee under a trust or other agreement which is subject to the disclosure requirements
of this section and who receives actual knowledge after August 18, 1987 of a change in
beneficiary, within thirty days after receiving such actual knowledge, shall record with
the county recorder of the county in which the property is located a notice of the
change. The recording and any subsequent recording of any change in any beneficiary
shall identify the trust or other agreement under which the grantee holds title and shall
include the legal description of the property and a list of the then current names and
addresses of the beneficiaries.
D. Notwithstanding subsections A, B and C of this section, a trustee is not
required to record a change of beneficiary if, upon the death of a beneficiary of a real
property trust, the interests of the deceased beneficiary vest in the beneficiary's
estate or in other beneficiaries identified in a previous recording. If the interest of
the deceased beneficiary vests in a beneficiary not identified in a previous recording,
the trustee shall comply with the recording requirements of this chapter within thirty
days of receipt of both knowledge of the death and the name and address of the successor
beneficiary or beneficiaries or within thirty days of the first distribution of income or
principal to a successor beneficiary or beneficiaries, whichever occurs first.
E. Any conveyance of real property or an interest in real property which does not
include the disclosures required by this section with respect to the property so conveyed
is voidable by the other party to the conveyance. Any action to void the conveyance
shall be commenced within two years after the date of recordation of the document
effecting the conveyance.
F. If real property or any interest in real property, or any mortgage, deed of
trust or other lien on real property, is acquired for value, the title, interest,
mortgage, deed of trust or other lien is not impaired or in any way adversely affected by
reason of the failure of any person to comply with the requirements of this section.
G. As used in this section, "trustee" does not include an agent for a disclosed
principal, a conservator, a guardian, a personal representative, an attorney-in-fact, a
lessor or lessee under a lease, a trustee in a bankruptcy or receivership proceeding, a
trustee under a deed of trust, a trustee under a business trust or a trustee under an
indenture for security holders.
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