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KJL LAW
KJL LAW, Lawyer
Category: Estate Law
Satisfied Customers: 749
Experience:  Attorney at law Office of KJLLAW
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I am interested in creating a trust protection. If

Customer Question

I am interested in creating a trust for asset protection. If my home is added to the trust, will my mortgage on my home or home equity line of credit be affected?
Submitted: 7 months ago.
Category: Estate Law
Expert:  KJL LAW replied 7 months ago.
You can add property to your living trust at any time. You will be the Trustee and you can always sell or give away property in the trust, or take it out of the living trust and put it back in your name as an individual without limitation.
To answer your question, you can put your house into your living trust even if owe money on it. A loan on the property, a mortgage or a deed of trust -- will follow the property into the trust, and it will also follow the property to your beneficiary. So after you die, the debt will pass to the new owner along with the property. When transfering real estate into a living trust, you do not need to take any additional steps to accomodate a loan -- there is no requirement to notify the lender. However, letting the lender know about the transfer could reduce the confusion in the future. I hope this helps.
Customer: replied 7 months ago.
If I have a line of credit available from a home equity line of credit will I still have access yo it?
Expert:  KJL LAW replied 7 months ago.
You should check with your line of credit if there are any restrictions on transfers attached to the line of credit, if not then there is no issue with the trust.
Expert:  KJL LAW replied 7 months ago.
if you have any other questions, just ask. If not, please rate the answer for credit and tracking.
Expert:  KJL LAW replied 7 months ago.
If you have any other questions, just ask. If not, please rate the answer for credit and tracking.

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