Q: Where can I find HUD approved language for a Living Trust to protect the lender and the HUD insured Reverse Mortgage?

A: Finding HUD approved language for incorporating into a Living Trust, especially to protect both the lender and the HUD insured Reverse Mortgage, can be a focused task. Generally, such language is detailed in HUD's guidelines or provided by legal resources familiar with real estate and elder law under California law. It's essential to ensure that the trust document complies with HUD requirements to maintain the reverse mortgage's validity.

You can start by visiting HUD's official website or contacting a HUD-approved housing counselor in California. These resources might offer access to the specific language or direct you to templates that include the necessary provisions to protect all parties involved. Additionally, legal databases or law libraries may have samples or templates that include the required language.

When drafting your Living Trust, it might also be wise to consult with a legal professional experienced in estate planning and reverse mortgages in California. They can provide guidance on integrating the HUD-approved language into your document accurately. This step ensures that your trust meets all legal requirements and protects your interests and those of the lender involved with the reverse mortgage.

A: Please allow me to address your comment that you want to draft your own trust. I regularly tell clients that there are several legal documents that a template would work for, assuming the template is based on the correct state's law. But estate planning is unfortunately not one of those areas of law and trusts are not documents a lay person should attempt. I do not say that to just get someone's business or as a sales pitch. It is the truth. The test I always give people to see if they MIGHT be OK drafting their own trust is whether or not they can tell me the legal meaning of the word "issue". If they can't do that, I bet their plans will not be honored because they will use the wrong words. The problem with estate planning is that one wrong word can completely derail the plan. There are many plain English words like issue that have legal meanings different from the dictionary meaning, so it is very easy to screw up the drafting. You might think your document says one thing but, legally, it means something completely different. And I can guarantee you that judges will use the legal meaning of a document rather than guess what a deceased person MIGHT HAVE wanted. So, please have a lawyer in your area prepare your trust. For your sake.

All that having been said, here is a link to the HUD manual: www.google.com/url?sa=i&url=https%3A%2F%2Fwww.hud.gov%2Fsites%2Fdocuments%2F42351HBHSGH.DOC&psig=AOvVaw20HMneTDlcZ2H5Xrw8DlvG&ust=1711842223236000&source=images&cd=vfe&opi=89978449&ved=0CAUQn5wMahcKEwjYzOCx05qFAxUAAAAAHQAAAAAQBA