Q: I am the primary beneficiary of a living trust and was left a house in California with a loan on it, what happens now
114,000 is what’s owe
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
As the primary beneficiary of the living trust, you'll need to work with the successor trustee to handle the transfer of the house and its existing loan. Your first step should be reviewing the trust documents to understand the specific terms and conditions regarding the property transfer.
The loan doesn't automatically disappear - it stays with the property. You have several options: you can assume the existing loan (if it's assumable), refinance the property in your name, or continue making payments under the current loan terms. Given the relatively modest loan balance of $114,000, refinancing might be a viable option if you have good credit and steady income.
Contact the loan servicer to inform them of the trust grantor's passing and discuss your options. You'll need to provide documentation, including the death certificate and trust paperwork. It's wise to consult with an estate attorney and tax professional to understand any potential tax implications and ensure the property transfer is handled properly. Remember that property taxes and insurance must still be paid during this transition period.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
