Can mortgaged property be placed in a trust?

Mortgaged property may sometimes be transferred to a revocable trust. But the loan documents and federal or state rules must be reviewed. A general form alone does not determine whether a transfer is legally appropriate.

General information

• The mortgage does not disappear.
• Accurate lender and insurance records are separate from preparation of the trust document.
• A deed error can create title problems.

Service steps to consider

1. Reviewing the mortgage and contact the lender.
2. Confirming insurance and tax treatment.
3. A licensed attorney or title expert can advise before a deed is recorded.

Quick check

• Is the asset in the trust's name?
• Did the bank or county record the change?
• Did I save proof?

How Complete Wills can help

Complete Wills' trust-based package includes a revocable living trust, schedule of assets, certification of trust, pour-over will, power of attorney, health-care directive, and HIPAA authorization. The service can prepare documents from customer answers. But the customer remains responsible for signing and for properly funding the trust. Customer support can explain website features and questionnaire fields, but it cannot choose documents, people, distributions, or legal terms, interpret a completed document, or explain how the law applies to a person's facts. Only a separately engaged licensed attorney may provide legal advice within the attorney's engagement.

Important limits

• A trust controls only property legally connected to it. A schedule alone may not change title.
• Get legal, tax, or financial advice before transferring retirement accounts, business interests, mortgaged property, foreign property, or assets with transfer restrictions. This article gives general information only. A licensed attorney can explain how state law applies to a specific estate plan or document.