Who do you need to tell?

9 Feb 2024 · 1 min

Watch on YouTube

1:01

In this short advisory video, the speaker outlines the three key parties you should inform when transferring ownership of your home into a trust. First, the mortgage lender – while federal law permits trust ownership without lender consent, the speaker advises notifying them to avoid future disputes. Second, the homeowner’s insurance carrier – the trust must be added as an additional insured on the policy to protect both the individual and the trust in the event of a lawsuit. Third, the county probate court – a new deed must be recorded to officially transfer title from the individual to the trust, otherwise the transfer is ineffective. The video concludes with a brief call‑to‑action inviting viewers to engage the speaker’s services or subscribe to his newsletter.

Chapters

If you want to put your home in a trust, is there anyone you need to notify about that? There's 3 answers. The first is a probably, and the last 2 are definitely. The probably, that would be your mortgage company. Strictly speaking, you do not have to notify your mortgage company because there is federal law that requires them to allow you to put your home in a trust. However, I tell my clients, go ahead and let them know. That way they could never say for whatever reason that you didn't tell them about it. Second is your insurance company. That's a definitely. When the home is just in your name, you are the insured under the policy. When you put your home into a trust, the insurance company will add the trust as an additional insured. Because if you do ever get sued, they will most likely sue you individually as well as the trust. And before I get to 3, remember, if you want to work with me or get my newsletter, click on my profile link. And the third is your county probate court. Yes, you have to let them know. And you let them know by filing a new deed, transferring the name of the home from yours individually to the name of the trust. And you have to do that, otherwise the home will never be transferred.