Full question:
My mother wants to put my house in trust. I am 63 and the house is in my name, but she keeps asking me to put it in a trust. Doesn't that keep me from selling it and/or getting a reverse mortgage?
- Category: Trusts
- Date:
- State: Georgia
Answer:
A trustee can sell or transfer assets held in a trust according to the trust document's terms. While a trust can allow for the sale of a home, selling may require repaying a reverse mortgage in full, including interest.
For a property in a trust to qualify for a reverse mortgage, it must be a revocable living trust. All beneficiaries must be eligible, meaning they should be over the age of sixty-two and live in the home as their primary residence. The reverse mortgage must be repaid when the beneficiary can no longer occupy the home. However, contingent beneficiaries do not need to meet these eligibility requirements.
The reverse mortgage lender will review the trust documentation to ensure it is valid and enforceable. They will also verify that each borrower or beneficiary can legally reside in the home for their lifetime. It’s advisable to consult a local attorney to review the specific facts, documents, and tax implications involved.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.