[WSBAPT] Garn-St Germaine question

[John J. Sullivan, Esq.]

I've always interpreted the statute and regs to limit the devise upon death
to a relative exemption as not applying if the devise is to an irrevocable
trust.

 

John J. Sullivan

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
On Behalf Of John Creahan
Sent: Wednesday, September 2, 2020 2:36 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Garn-St Germaine question

 

Hi,

A client owns a house (with a mortgage). Two siblings live with her and she
wants them to have the option to remain in the house after her death.

Garn-St. Germaine prohibits a bank from enforcing a due-on-sale clause in a
mortgage if the property is transferred "to a relative resulting from the
death of a borrower." Does anyone know if the transfer to a testamentary
trust for a relative's benefit would also be protected?

Thanks,

John

 

 

John Creahan
206-578-5877
 <http://www.cairn-law.com/> www.cairn-law.com

 

Fremont office:

3417 Evanston Ave. N, Suite 312
Seattle, WA 98103





 

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