The popularity of Reverse Mortgages presents a unique challenge to the probate avoidance advantage of trusts.
As our population increases in age many retirees find that their home is a good place to access cash for their needs. At times retirees want the security of ready cash on hand that they will never have to repay. Often times a paid off residence provides the opportunity to secure the desired cash.
These reverse mortgages are really the same as any line of credit except that they typically are repaid on the expiration or sale of the property.
The advantages of the loan are often explained in more detail than the legal steps necessary to carry out the transaction. Accordingly, securing counsel familiar with trust law and reverse mortgages is recommended.
As home lenders do not want to loan to a trust that they have trouble locating later, they will only loan to a person. Therefore they typically require that the property be taken out of any trust that holds title and is placed in the individuals name in order to complete the transaction. At the conclusion of signing the loan documents the property should be returned to the trust by a deed properly filed with the county recorder.
If the deed returning the property to the trust is not properly signed and filed the property may end up going thru the probate process rather than gaining the advantage of passing by a trust, which was likely formed with the goal of avoiding probate.
The Law office of Rickard L. Borg is pleased to work with reverse mortgage professionals to insure your property is returned to your trust fallowing a Reverse Mortgage.
