Attorney Thomas B. Burton discusses how to transfer a property with a mortgage into a Revocable Living Trust and also discusses a federal law which facilitates such transfers.
Transcript of Video: Can I Transfer My Home Into My Trust if I Have a Mortgage on the Property?
Today's question can I transfer my home
into a trust if I still have a mortgage
on the property the answer is yes
there's a federal law called the
Garn -St. Germain Act which prevents lenders
from accelerating the due on sale clause
simply for forming a revocable living
trust a Grantor Trust of which you are
the grantor and settlor and into which
you place your home so for instance if
you have your primary home and you have
a mortgage on the property you can form
a revocable living trust and transfer
the property by deed into your name as
trustee of your trust without
accelerating the due on
sale clause in the loan documents other
things such as selling the property or
transferring it to a friend could
trigger that clause so you shouldn't do
them without consulting with your loan
officer and your loan agreement but
transferring the property into a trust
for estate planning purposes is done all
the time and totally fine if you have
questions about this talk with me or
another lawyer your attorney about how
to do it and consult with your bank as
to any special forms or info they need
filled out generally it just involves
filling out a deed and it's a nice thing
to give a bank the heads up that you
formed the revocable living trust and you
want to transfer the property into the
name of the trust for estate planning
purposes great question and thank you
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Transcript and captions provided for ease of access for the hearing impaired.
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