Q: Will a revocable living trust help with a reverse mortgage in CA?
My mom wants me to have her share of the house she has a reverse mortgage on when she dies. From what I can tell, you get only 30 days to resolve the mortgage with various extended time it at most can be one year. I am in California, no probate is clearing our court system that fast.
What are our options to ensure I can control her property interests upon her death without getting foreclosed on merely for being in probate and unable to act?
We were told by a non-lawyer that a revocable living trust would work, but neither of us wants to just go ahead with it due to costs and efforts if it is not a possible way to free up the property.
Thanks for the help, I understand it's general guidance but it will be very appreciated.
A: You need to consult with an estate planning attorney regarding a revocable living trust if you want any chance to avoid probate and not have the property tied up in probate court while you try to refinance out of a reverse mortgage. The cost of hiring an estate planning attorney now will almost always be cheaper than having to hire a probate attorney later.
Nina Whitehurst agrees with this answer
A: I agree with my colleague, and would also add that in most cases, the cost of creating a revocable living trust and transferring the property to it, is considerably cheaper than the cost of probate in the future.
A:
A revocable living trust is a legal tool commonly used in estate planning to manage and distribute assets upon the grantor's death. While a revocable living trust can be an effective estate planning tool, its ability to address the specific concerns related to a reverse mortgage may depend on various factors, including the terms of the reverse mortgage agreement and California state laws.
Here are a few points to consider:
Review the reverse mortgage agreement: Carefully review the terms of the reverse mortgage agreement to understand the implications for transferring ownership or control of the property. Some reverse mortgage agreements may have provisions related to the transfer of ownership or the necessity to repay the loan upon the death of the borrower.
Consult with an attorney: Seek legal advice from an attorney who specializes in estate planning and real estate law. They can review the details of the reverse mortgage agreement and assess whether a revocable living trust would be a viable option to address your specific situation. They can also provide guidance on potential alternatives or additional estate planning strategies that may help protect your interests.
Explore other options: In addition to a revocable living trust, there may be other options to consider, such as discussing potential strategies with the lender or seeking refinancing options. Each case is unique, so it is essential to consult with an attorney who can provide advice tailored to your circumstances.
It is important to weigh the potential benefits and costs of establishing a revocable living trust in light of your specific situation, including the value of the property, the remaining balance of the reverse mortgage, and any potential implications on eligibility for government benefits or taxes.
Remember, consulting with an attorney who specializes in estate planning and real estate law is crucial to ensure that you receive accurate and personalized advice based on the laws and regulations in California and the specific details of your case. They can guide you through the process and help you make informed decisions to protect your interests.
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