May 2010 Vol. 3, No. 4

Underwriters' Bulletin

Procedural Updates

ATG Revises Decedents' Estates Underwriting Guidelines

ATG has revised underwriting guidelines with respect to decedents' estates. ATG now requires that the names of the heirs and devisees be searched for judgments and liens, even where an executor, administrator, or other type of personal representative will be signing the deed.Our analysisof the case,United States v Drye, 528 US 49, 58 (1999), informed this decision.

After you conduct the search of the heirs and devisees, raise exceptions using the following guidelines for Illinois property:

  • For property sold under Section 28-8 of the Probate Act of 1975 or under a power of sale in the will, federal tax liens belonging to an heir or devisee of a decedent's real property must be raised on Schedule B of the commitment or policy for that property's title.

  • For property sold under Supervised Administration, Article 20 of the Probate Act of 1975, all types of judgments and liens must be raised as Schedule B exceptions. For those judgments or liens to be removed from title, that information must be included in the petition for sale, notice must be given to the creditors, and there must be a court order expunging the liens from title.

  • For property located in Wisconsin and Indiana, all heir&€™s federal tax liens must be raised as exceptions to title.

For property located in all states, ATG continues to find that a disclaimer will not relieve title to the property in the estate from the disclaimant's federal tax liens. Thus, where there is a disclaimer filed in the probate case, the disclaimant's name must be searched for judgments and liens and any federal tax liens raised as Schedule B exceptions to title.

If you have any questions, please contact the ATG Underwriting Department,, 217.403.0020, or 312.752.1990.

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[Last update: 5-27-10]