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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">I agree with Brent and Laura on the law. Exception 8 is not relevant and is confusing the analysis. (Ann, the “rights of occupancy language” is not even relevant or needed
for this exception not to work. That language is stating the ADDITIONAL requirement that the Father in this case not only be beneficiary but also the occupant.) This exception protected HIM during life lifetime occupancy of the mortgage residence for HIS transfer
into HIS living trust, say.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">A different exception protects daughter as inheritor from father. But exception 8 does not “add on” to the exception for inheritance from a father. Exception 8’s own terms
make it irrelevant to this situation – the daughter is not the borrower, period, end of analysis. (Stated otherwise, Eception 8 is relevant is daughter REFINANCES into her own name after taking title via PR Deed; and after recordation of the refi, THEN deeds
into her own RLT. That is not the scenario here.)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">HOWEVER, I am guessing the
<b><u>practical reality</u></b> may be that <u>nothing will happen</u> if the property is deeded out to her via PR Deed (protected); the mortgage is paid faithfully; and the daughter’s subsequent deed conveying her interest (under the PR Deed) to her RLT –
and it must FOR SURE include after-acquired title – just sits “of record” waiting to take legal effect one day when the reconveyance (on the original deed of trust securing the loan) is recorded, reconveying title to the father after payoff (and instantaneously
to the daughter via PR Deed and to her RLT via her deed to trust including after-acquired title language).<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">And, if the bank squawks earlier, then she will have to sell or refinance, but is PROBABLY no worse off than if she sells or refinances now.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">But of course she could also just CALL the lender to ask what their practice is and find out if I’m incorrect or correct about the “practical reality” separate from the statutory
analysis.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Best, Josh
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Ann Manley<br>
<b>Sent:</b> Thursday, August 22, 2024 2:03 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Garn-St. Germain & RLT<o:p></o:p></span></p>
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<p class="MsoNormal">Exception 8 says: "A transfer into an inter vivos trust in which the borrower is and remains a beneficiary
<b><i>and which does not relate to a transfer of rights of occupancy in the property</i>.</b>"<o:p></o:p></p>
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<p class="MsoNormal">Does this mean the property owner must retain the right to occupy the property?<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Ann Manley, Esq.</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">The Manley Law Firm, P.S., Inc.</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">PO Box 16324</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Seattle, WA 98116</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">(206)292-3064 / (206)292-3914 fax</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><a href="http://www.manleyfirm.com" target="_blank">www.manleyfirm.com</a></span><o:p></o:p></p>
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<p><b><i><span style="font-size:10.0pt;font-family:"Arial",sans-serif">The Manley Law Firm practice areas include Bankruptcy*, Estate Planning, Auto Accidents, Civil Litigation, Construction, Commercial and Contract Law, Personal injury, Small Business, Unemployment
Claims, Wage Loss and Compensation claims</span></i></b><o:p></o:p></p>
<p><i><span style="font-size:8.0pt;font-family:"Arial",sans-serif">* The Manley Law Firm is a Debt Relief Agency. We help people file for bankruptcy relief under the Bankruptcy Code.</span></i><o:p></o:p></p>
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If you have received this communication in error, please immediately notify the sender.</span></b><o:p></o:p></p>
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<p class="MsoNormal">On Thu, Aug 22, 2024 at 12:53<span style="font-family:"Arial",sans-serif"> </span>PM Brent Williams-Ruth <<a href="mailto:brent@williams-ruthlaw.com">brent@williams-ruthlaw.com</a>> wrote:<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif">I have not personally come across this, but given that Exemption #8 specifically states that it is OK to go into trust so long as the borrower is the one beneficiary, I would surmise that it
does not protect the transfer.Definitely worth reading the entire statute though (I created a cheat sheet with just the 9 exemptions away from the rest of the statute. <o:p></o:p></span></p>
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<p><b><span style="font-family:"Times New Roman",serif">Brent Williams-Ruth</span></b><span style="font-family:"Times New Roman",serif"> (pronouns: he/him)<br>
<i>Attorney-At-Law</i></span><o:p></o:p></p>
<p><b><span style="font-family:"Times New Roman",serif">Law Offices of Brent Williams-Ruth, </span></b><b><span style="font-size:7.5pt;font-family:"Times New Roman",serif">a division of BWR Consulting, PLLC</span></b><o:p></o:p></p>
<p><b><span style="font-family:"Times New Roman",serif">Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003</span></b><o:p></o:p></p>
<p><b><span style="font-family:"Times New Roman",serif;color:red">Mailing Address:</span></b><b><span style="font-family:"Times New Roman",serif"> PO BOX 3319; Federal Way, WA 98063 </span></b><o:p></o:p></p>
<p><span style="font-family:"Times New Roman",serif">Office/Scheduling Phone:<span style="color:#004080"> </span><span style="color:red">(253) 285-7751</span></span><o:p></o:p></p>
<p><span style="font-family:"Times New Roman",serif;color:red">For All Meetings & Scheduling:
<a href="mailto:info@williams-ruthlaw.com" target="_blank">info@williams-ruthlaw.com</a></span><o:p></o:p></p>
<p><span style="font-family:"Times New Roman",serif"><a href="mailto:Brent@Williams-RuthLaw.com" target="_blank">e-mail</a> / <a href="http://www.williams-ruthlaw.com/" target="_blank">website</a> /</span><span style="font-size:9.5pt;font-family:"Times New Roman",serif"> </span><span style="font-family:"Times New Roman",serif"><a href="http://www.facebook.com/bwrlaw" target="_blank"><span style="font-size:9.5pt">facebook</span></a></span><span style="font-size:9.5pt;font-family:"Times New Roman",serif"> / </span><o:p></o:p></p>
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<p class="MsoNormal">On Thu, Aug 22, 2024 at 12:36<span style="font-family:"Arial",sans-serif"> </span>PM Morgan Madison <<a href="mailto:morgan@madeira-legal.com" target="_blank">morgan@madeira-legal.com</a>> wrote:<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Hello list:
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Client inherits Washington real property subject to mortgage (inherited from her father). Client resides in California and owns real property in California in a revocable living
trust. Client would like to add the Washington real property to her California trust.
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Does the Garn-St. Germain Act protect the transfer to her trust from triggering the due on sale clause of the mortgage?
<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Thank you,<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Morgan<o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><span style="font-size:9.0pt;font-family:"Century Gothic",sans-serif;color:#7E6662">ATTORNEY</span></b><o:p></o:p></p>
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