Legal Question in Real Estate Law in California
Hi,
My wife and I are purchasing a home and we would like to put it in our Living Trust. I failed to mention this to anyone at the beginning of the document creation process so I figured we would just wait until the escrow closes and look into taking care of it then.
However, we are now signing a paper titled �Vesting Worksheet� that gives the instructions �� ESCROW HOLDER IS INSTRUCTED TO REFLECT MY NAME AND VESTING AS FOLLOWS:� It then list options like �As Joint Tenants�, �As Community Property�, etc. and of course, �Other�.
Is this �Other� option a place that we could (and should) select and list our living trust?
Thank you.
2 Answers from Attorneys
Yes. Assuming you do have a living trust. The trustee of your living trust would hold title to the property as trustee of whatever trust you have. I hope you are not using one of those kits you find on the internet.
While you should take title in the name of the trust, the timing depends on other factors. If you are financing the proeprty and have not advised the lender you are taking title in the trust, all your loan documents will have to be redrawn to show the borower is the trust. Some lenders will not loan to a trust, and you must finance personally, then transfer to the trust. If you are paying cash, or have advised the lender you are buying in the trust, go ahead and use the trust name. You can also wait until after closing and then transfer the property to the trust by a separate deed. A later transfer of your residence to the trust in this manner will not trigger a due on sale clause. Be careful that the appropriate Change of Ownership forms are signed and processed.This gratuitous response does not create an attorney client relationship. The advice provided herein is generic, may not apply to your circumstances and is not to be relied upon in your actions. An attorney client relationship is created only upon execution of an engagement letter hiring me or my firm.
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