When it comes to managing your estate and securing your family’s financial future, the impact of refinancing your home on your estate plan might not be the first thing that comes to mind. However, if you’ve established a revocable trust as part of your estate planning strategy, refinancing your house requires a crucial step that should not be overlooked—ensuring the property is properly placed back into the trust after the refinancing process is complete.
The process of refinancing your home commonly involves moving the property out of the trust and placing it in an individual’s name to facilitate the refinancing. Then you must transfer the property back into the trust once the refinancing is finalized.
Oftentimes, clients go through the refinancing process smoothly, but miss the crucial step of returning the property to the trust. This oversight can potentially lead to complications in the future when it comes to estate planning, such as your refinanced home going through probate, a primary reason to create a revocable trust.
Maintaining your property within the trust ensures that it also remains aligned with your broader estate planning objectives. By neglecting to transfer the property back into the trust, your original intentions for asset distribution and inheritance may be compromised. To avoid this situation, it’s essential to have a clear understanding of the refinancing process within the context of your trust.
Contact Caress Law
Refinancing your home is a common financial decision, however, when you have a revocable trust we recommend that you consider the impact it may have on your estate plan. When in doubt, contact your estate planning attorney to ensure that your property remains owned by your Trust after the refinance and your estate planning goals are not compromised. At Caress Law, we are dedicated to assisting you in navigating these intricacies. Let us help you safeguard your estate plan’s integrity and provide for your loved ones according to your wishes.
