Photoshop to Illustrator: background not transparent

Hello everyone,
Can someone tell me why this happens and how to fix or get around or tell me the proper method? When transferring from Photoshop to Illustrator by copy/paste or directly dragging an image, object, etc., the background in not transparent. My workaround is to save as .psd and place in Illustrator, which is a pain. I thought there was "seamless" integration.
Thanks a bunch,
Gustavo
Santa Fe, NM
Owl Design Studios

I am currently trying to create an .svg using Photoshop .psd file (with layers in tact). I'm new to these products so it may be obvious to others that the above intention was to eventually place the .svg in some sort of website creation software such as Muse. Which is precisely what I am attempting. However, I am getting a white background once I place or copy and paste into Muse. My starting .psd has a transparent background without any hidden layers causing this problem. To test this I placed the .psd file into Muse and it still has a transparent background. However when opening or placing this file into illustrator, it picks up a white background. If I do exactly as described above, I still get the same result. So far I have tried:
1) Simple copy and paste from Photoshop .svg to illustrator to Muse. Result - white background.
2) Placing the .psd in illustrator, then placing the .svg file in muse. Result - white background.
4) I have also tried the every combination of 1 and 2. - Result - white background.
3) I have now created a path in Photoshop from the text layer to yet again attempt the above methods. Result - white background.
I'm including an image of the object I am trying to place with transparent background, but I have both a flattened rasterized version, a version complete with layers and a third (.svg) with the corresponding objects. I am completely new to Illustrator as of today so any help would be greatly appreciated. Thanks.
Link to .psd file "Welcome text"

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