Long v. Williams

HUNTLEY, Justice.

By this appeal we are asked to determine whether a prior execution of a deed of trust on real estate divests the trustor of title to the extent that his bankruptcy estate and bankruptcy trustee receive no interest in the property upon his subsequent bankruptcy.

We hold that the deed of trust conveys to the trustee nothing more than a power of sale, capable of exercise upon the occurrence of certain contingencies (such as default in payment) and leaves in the trustor a legal estate comprised of all incidents of ownership which passes to the bankruptcy estate upon the filing of…