One question we get often from clients is concerns that creating and funding a trust with their primary home will allow the mortgage company to “call” their mortgage.
Most mortgages carry a “due-on-sale clause” which is a contract provision that authorizes a lender, at its option, to declare due and payable all funds remaining on a loan that holds security to real property.
However, the Garn-St Germain Act protects transfers to living trusts for estate planning purposes, as along as the borrower is a beneficiary of the trust with ongoing right to occupy the property. This is a federal statute that applies to all States within the United States.
Contact Reid Council Law Firm to schedule your legacy building planning session for your estate planning needs. Visit http://www.reidcouncillaw.com or call (215) 258-4620 today.