Family Trust (Real Estate)
My son wants to buy us a home and put in into a family trust and later sign it over to us where he is no longer responsible and we are the holders of the trust, the property is to be held for minor children in the family. We would like to know can this be done or is it better for him to buy and later Quit Claim his interest over to us for the children and does the mortgage need to be assumable.
Thank you, Carmen
Re: Family Trust (Real Estate)
The trust method would be preferable these days to the quitclaim, because trusts are so flexible and can be drawn up to accomplish exactly what the parties have in mind (if legal), whereas moving property around by quitclaim leaves much to chance. The trust should be prepared by an attorney who specializes in trust and estate work and should be explained to the parties in terms everyone understands so that you know, before signing, that the trust accomplishes your goals.
As to the financing, show the trust attorney your note and deed of trust. Even some loans that are otherwise unassignable or unassumable allow transfer of the collateral to certain trusts used for estate-planning and perhaps other purposes.
Bryan Whipple
Bryan R. R. Whipple, Attorney at Law
P O Box 318
Tomales, CA 94971-0318
Re: Family Trust (Real Estate)
Yes it can be done. You or your son will have to consult a lawyer. The lawyer can create a trust document which will accomplish most if not all of his goals. The cost will depend upon the complexity, but, compared to the cost of buying a home it will be a drop in the bucket.
Please feel free to contact us if you want an attorney’s assistance.
Mitchell Roth
MW Roth, Professional Law Corporation
13245 Riverside Dr. Suite 320
Sherman Oaks, CA 91423