[WSBAPT] Can you put a property with a Reverse Mgt into Revocable Trust ?

[michael westseattleattorney.com]

Thanks - great advice

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________________________________
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Nick Pleasants <npleasants at ohswlaw.com>
Sent: Thursday, June 29, 2023 2:01 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Can you put a property with a Reverse Mgt into Revocable Trust ?


Michael,

I have seen it done. If it is an HECM (Home Equity Conversion Mortgage), that is an FHA-insured Reverse Mortgage, then the HUD rules specifically allow it. See Housing Handbook 4235.1 at 4-5(A) “Conditions for Origination in the Name of a Living Trust”. https://www.hud.gov/sites/documents/42351C4HSGH.PDF My sense is that if you tell the lender in advance that you want to obtain the loan as part of a living trust, they can allow it. I don’t believe that the usual Garn St. Germain Act preemption applies, so you really should only transfer a property with a reverse mortgage to a living trust after obtaining lender’s approval.

Best,

Nick



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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of michael westseattleattorney.com
Sent: Thursday, June 29, 2023 11:07 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Can you put a property with a Reverse Mgt into Revocable Trust ?



Hi, Does Anyone know if a person can put a property subject to a Reverse Mgt into Revocable Trust? The client does not have documents so hoping to avoid a long wait to get the DOT etc if anyone knows. Thanks, Mike



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