Q: Adding investment property to living trust
I am from CA and am investing in rental property in North Carolina. We have a living trust established few years back and to which our existing home was added. I was told to add any future property (in CA or out of state) to the trust. As I purchase this new property, is it better to assign the deed/title to the trust during the purchase process itself or do it after closing? If doing it during the purchase process, is it possible for mortgage to be only in my name (or is it tied to the trust in some way and has to be in both mine and wife's name). If we transfer property to trust after closing are there issues such having to be present in person to perform the transfer? A bit confused on the best way forward here.
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A: It is doubtful that the lender will take a deed of trust and note with only the trustee's name and signature. They will want the trustee to sign individually. And this is at closing. If transferred to the trust later, it might violate a due on sales clause, but will definitely still encumber the property for potential foreclosure. Hire a NC attorney to represent you, and do not execute the documents on the internet.
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