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Due to COVID-19, more commonly known as “Coronavirus,” and the current economic climate that has resulted from the pandemic, interest rates on mortgages are low. All of the chaos and harm caused by the virus notwithstanding, this is an ideal time to take advantage of those low rates with a refinance or an equity line.

Why you should move your home into a Trust.

When someone dies, often the estate assets are tied up in the probate process for at least several months and cannot be used to manage real estate that the deceased person owned. Family members are often scrambling to ensure that the utilities, mortgage, insurance, and taxes all stay current until sufficient assets are available to handle the management of the home.

The process can delay access to funds needed to repair the property in preparation for its sale, and generally speaking, the sale of the property, if desired, can be held up for some time. In order to avoid these headaches, it is extremely common to move your home into a trust as part of your estate planning. This prevents delay in handling the management of that home when you die and permits the immediate sale of it if needed, as well as allows access to needed funds for repairs. Generally speaking, moving your home into a trust is a great estate planning tool that accomplishes a lot with relatively little inconvenience to your life.

When working with mortgage companies and banks, there are several requirements that may need to be satisfied in order to complete a refinance. Some banks and financial institutions, despite the fact that putting one’s home in a trust is commonplace, may insist that your home not be owned by the trust while the refinance is being processed. Practically, this means deeding your home out of the trust, completing the refinance or loan process, and then deeding your home back into the trust. It may sound odd, but it is extremely common.

What can you do if your home is already in a Trust?

If your property is currently held in a trust, and you would like to or are attempting to refinance, the attorneys at Hopler, Wilms & Hanna, PLLC can assist in deeding the property both out of and back into the trust.

  • We offer low, flat fees for both transactions as well as incredibly quick turnaround times to ensure that you are able to take advantage of the low-interest rates that are currently being offered.
  • We also take care of recording the deed with your local Register of Deeds to ensure a smooth and efficient transaction for you and your family.

This may seem cumbersome, but there are multiple reasons in which trust is a smart idea.

When your real estate is held by a trust, you can avoid probate when you pass away since the title is held by a trust rather than a person. Depending upon the situation, probate can be a long, drawn-out process, wrought with audits, fees, and tedious accountings, and avoiding the process is a common objective of our estate planning clients.

A trust can also ensure quicker management of your property after you pass away, and having your home in the trust is a great way to ensure the real estate is managed quickly and efficiently at your passing, even if it means occasionally moving the property in and out of the trust when you want to leverage the equity.

Our attorneys regularly draft trusts to assist in probate avoidance. If you complete a refinance and decide you may be interested in a trust, we offer free consultations as well as flat fees for this service as well. With decades of combined experience in handling trusts, deeds, and other estate planning tools, you can rest assured that the wealth you pass on, whether in the form of land or cash, will be passed via a plan that is designed for efficient administration at your death.

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