[WSBAPT] House for surviving spouse

[Krista MacLaren]

Paige,

I am curious if the trust would change the protection of the Garn-St Germain Act?  I didn’t think there would be a problem in this situation.  https://www.law.cornell.edu/uscode/text/12/1701j–3

Krista J. MacLaren
Attorney at Law
Northgate Executive Center II
9725 3rd Ave NE, Suite 600
Seattle WA 98115
(206) 523-6116
kjm.inc at icloud.com

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> On Nov 15, 2018, at 10:08 AM, Paige Buurstra <paige at buurstralaw.com> wrote:
> 
> Hello all, 
>  
> I have a client who owns a home as his separate property. He is in his seventies and recently got remarried. He has 2 children from his first marriage. He wants to allow his current spouse to live in the home for up to 5 years after he passes. There is still a mortgage on the home. Wife would be responsible for paying the mortgage. At the end of 5 years or when Wife decides to move out, He then wants surviving spouse to receive 20% and each child to receive 40% of the equity. (this is not a taxable estate)
>  
> My first inclination is to create a living trust and transfer the house into the trust, including the period of years and ultimate disposition in the trust terms. However, my concern is that at the time of client’s death, we publish notice to creditors, the mortgage company is on notice that client is deceased and calls note due so that house must be refinanced or sold. Children will not want to be on the hook for a mortgage that wife is obligated to pay. Mortgage co would not likely lend to the trust.  Essentially, lender could force the sale right away, thwarting the purpose of the trust.
>  
> Has anyone run into this or have any other ideas or suggesetions?  
>  
> Thanks,
> Paige Buurstra
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