We receive this question often: “I just purchased a property, and would like to move it into my trust. Can I do that?” A homeowner should consider a few things before doing so.
You may violate a covenant in your mortgage. Your lender has not had an opportunity to qualify your trust. If you receive permission from your lender first, you avoid the risk of the lender claiming you are in default and initiating foreclosure proceedings. There are exceptions under federal law for estate planning. You should always consult a real estate attorney, CPA, and often times a financial advisor before deciding to place your home into trust.
There is one more critical consideration: if you have a title insurance policy, you should check with your real estate attorney who will contact your title insurer to determine whether you need a “change endorsement.” If such an endorsement is required, transferring without it could mean your policy no longer protects your interest in your property.
You can transfer your property into trust, but check with your lender and consult a real estate attorney first. If you would like more information about transferring your property into trust, contact Stiles Law at (781) 319-1900.
Stiles Law, with offices located in Boston and Marshfield, Massachusetts, is a firm concentrating in real estate conveyancing and mortgage lending services, representing buyers, sellers, borrowers, banks, mortgage companies, investors, builders and developers in all of their real estate and mortgage transactions. Stiles Law serves all areas of eastern Massachusetts–the North Shore, Boston, and Cape Cod, in addition to the entire South Shore, including: Plymouth, Kingston, Duxbury, Hanover, Pembroke, Marshfield, Scituate, Norwell, Cohasset, Hull, Hingham, Weymouth, Braintree, and Quincy.
Copyright © 2019 Stiles Law, All rights reserved. Stiles Law is a Massachusetts licensed law firm and all content is based on Massachusetts law. The information presented above is meant to be used for general informational purposes and it should not be construed as legal advice or legal opinion on any specific facts.