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Walt, Other/Just Looking in Los Angeles, CA

How to refinance residence in a irrevocable trust?

Asked by Walt, Los Angeles, CA Wed May 5, 2010

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Risa Liebster’s answer
Deb and Shel-lee are correct. Someone I know was involved in a similar situation and a mistake was made which caused much stress and upset. It took quite a while to rectify the problem that was created. Definitely speak to the person/persons who made the trust. Good luck!

Risa Liebster, Realtor®
DRE 01831063
Keller Williams Realty
0 votes Thank Flag Link Wed May 5, 2010
I agree with Shirlee. Since we are Realtors, not tax or legal advisors, we cannot advise you on this issue. Depending on the construct of the trust, removing and replacing the property for a refinance may have serious legal and/ or tax ramifications. Please consult the maker of the trust.

Deborah Bremner CSP, SFR, CRS
REALTOR, 00588885
(D) 818.564.6591
Blogging at:
0 votes Thank Flag Link Wed May 5, 2010

I have heard advice similar to that given by Lori below regarding refinancing properties held in a trust. I have also heard of people who have removed property from a trust and this voided the trust. Your best bet would be to talk to the attorney who drew up the trust (or another attorney if that person is not available) before you take any action. This is the only way you can be sure that you are not doing anything that would void your trust and thereby remove the protection you were looking for when you set it up. Hope this helps. Dare to Dream.

Shel-lee Davis, CDPE, SFR, QSC
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Wed May 5, 2010
I have refinanced one of my properties in a irrevocable trust before.

What you do is take your property out of your trust while you refi and put it back after the refi. Your lender should be able to guide you through that. The escrow company you use to refi can record your property in your name without the trust and then after you have refi'd record it in the name of the trust. You sign a deed taking it out of the trust and then sign another deed putting it back into the trust.

It is really quite simple to do.

Good luck.
Lori Matson
0 votes Thank Flag Link Wed May 5, 2010
Your best source of advice is an attorney who specializes in real estate and or any qualified loan officer--he/she will be your best guide.
0 votes Thank Flag Link Wed May 5, 2010
That's a very good question, and I'm curious about the answer for this one too.

You should run this past an estate-planning attorney. Yet, I wonder if s/he will suggest something similar to a "swap and drop".
0 votes Thank Flag Link Wed May 5, 2010
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