We are often asked by clients who have a revocable trust, whether they can put their property into that trust, and the answer is usually yes.
What if there is a mortgage?
Even if that property has a loan against it, you can transfer ownership of the property into a revocable trust of which you are the beneficiary.
What if there is no mortgage but may be one in the future?
Now, there can be some complications. For instance, if you don’t have a loan on the property, but wish to get a mortgage in the future or a line of credit, the financial institution may require you to remove the property from the trust, putting it back into your own name, and then placing it back in the trust after the loan is secured. This is not an issue, except that it can add additional cost to you with the cost associated with transferring the property out of the trust and then putting it back into the trust.
If you have an existing mortgage or an existing line of credit on the property, again, placing that property into a revocable trust of which you are a beneficiary should not be an issue.
Founded by a nurse attorney and with offices in Acton, Sudbury, and Andover, Massachusetts, Generations Law Group helps families navigate the complex areas of estate planning and elder law to inform and protect loved ones of every generation.
