A Potential Pitfall with Refinancing Your Home....

Many people don't realize that refinancing their home could land them in probate court. What can and does happen much of the time is that a client refinances their home and their house ends up in their name to close the loan and the house doesn't get re-titled back into their revocable trust. Then time goes on, and the client forgets about it which would later trigger a probate action when they pass.

Over the years, we've seen many times where a new client comes to us to restate their trust plan and we discover that the home has not been in trust title for years for this very reason. In fact, my husband and I recently refinanced our home and when we closed on our loan to do some remodeling, the house was put into our names even though we tried to get it to be put into a trust.    

There are three options for solving this problem however: (1) instruct escrow to close the loan and then vest title in the name of your trust; (2) refinance the home inside the trust never removing it from trust title if the lender will allow it; or (3) close the loan in your name, and then contact us to transfer the home back into trust title (if escrow will not do this for you).

If you're concerned that your home may no longer be vested in trust title, please contact Lisa at my office at 760-448-2220 or contact her at lisa@geigerlawoffice.com, and she will pull title to your home to confirm the home's vesting.

 

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