In Texas, the use of revocable living trusts is not as usual as in other states. However, when a Texan owns real estate in another state, then it can be advantageous to place that real estate in a revocable living trust. If you own a vacation house or other real estate outside of Texas and decide to put that property into a trust, consider that life is long and you may end up refinancing your house, but if you do, does it get taken out of the trust?
Typically when you refinance a house held in a living trust, the lender will require the owners to take it out of the trust in order to get the new loan. After the loan, you can then transfer it back in. Most often this is the case because the loan officers want to check your individual credit ratings, but it depends on the lender. Some lenders are willing to give a new loan without the living trust shuffle being necessary. However, if you are refinancing, you should expect to have to create and record the deed transferring out of the trust in order to qualify for that loan.
Frequently, owners forget to close the loop on this process by executing the deed after the refinancing to place the house back in the trust. Because placing your vacation home into trust can allow you to avoid probate outside of Texas, it is important to remember to take this final step.
If you have held off putting your vacation house in your living trust because you think you might need to refinance someday – Don’t. Taking a house out and putting it back in is actually a relatively painless process, and a good lawyer can help walking you through the process. If you need to set up or manage a trust, contact us today.
If you don’t have any children, you may think that it’s not as important to make a plan for your estate. However, estate planning is important even for couples without children. Here are a few reasons why you should get in touch with an estate planning attorney right away and not push it off.
Designate Power of Attorney
It’s important to give someone you trust your power of attorney. Do this for both your financial and medical needs; it does not have to be the same person for both. Doing this will ensure that if you are incapacitated and unable to make medical or financial decisions for yourself, someone you know and trust will be able to make and carry out the right decisions for your healthcare needs and financial assets.
Who will get your assets when you pass away? You may want to give them away to friends, extended relatives, or charity. If you don’t write a Will, the court will be the one who ends up deciding what to do with your assets, and many times the extended family will fight over how best to divide your assets.
Include Your Partner
Writing a Will is especially important if you are not legally married but have a relationship with a significant person whom you would like to benefit under your Will. If there is no legal relationship, then they won’t get access to your assets unless you include them in your will. They may not even be able to visit you in the hospital if you are incapacitated. There are many ways to include someone with whom you have a significant relationship in your estate. A professional estate planning lawyer will be able to examine your situation and help you out.
Contact us today for all of your estate planning needs.