Taking Title in a Family Trust
California is a “Community Property” State and by that definition, this allows married couples to share equal and undivided interest in their assets. Such assets like real estate are important to guard against probate.
Probate is the court action that could arise when one party to a joint asset becomes deceased and third party questions the entitlement of the asset to the surviving spouse. In other words, when one spouse dies, the surviving spouse normally obtains the ownership rights of the deceased spouse share of the asset. Having that asset, like a house, avoids the costly time and money going to court to settle any disputes. Assets in Trusts will avoid probate.
Make sense? Good.
In this video Blog, I am talking about how some lenders no longer allow for homebuyer’s to record the purchased property in the name of a family trust. For many years this has been allowed and a normal and customary practice for home buyer’s to protect their home from probate and avoid any type of interference to the surviving spouse’s right of ownership.
Trusts don’t die, people do…
This was a direct quote I received from a Underwriting Manager on why some lenders don’t like to have their clients record their loans in the name of a family trust. It appears that having a home loan record in the name of a family trust somehow complicates things at a much higher level during the life of a home loan.This doesn’t make sense to me, and I have yet to get a clear-cut answer. I will keep you posted.
In the meantime, I have done additional research and have found some lenders that do not have a problem with this and I have developed my own Loan Officer 911 work-around.
Want more Info on a Trust?
If you want more information on a Family Trust, give my friend Colleen Decker a call or email her and tell her I sent you for a free consultation:
Colleen C Decker
Insurance & Planning Specialist Labrum Wealth Management, LLC
Phone : email: email@example.com
PLEASE NOTE: My referrals I offer are NOT paid or sponsored posts. All of my recommendations are with services that I currently use and the recommendations that I offer are the same ones I give my family, friends and relatives. Please accept my referrals as a choice