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<p class="MsoNormal"><span style="font-size:11.0pt">Hello all, <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">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)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">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.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Has anyone run into this or have any other ideas or suggesetions? <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Thanks,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Paige Buurstra<o:p></o:p></span></p>
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