Hi Terry. My son and daughter-in-law are trying to have a trust and will done in Tennessee. Does a mortgage go in a trust and if so how is that handled? Also my attorney told me to not have auto in trust since it’s not a permanent possession? Their attorney said just opposite?Thanks for your help. Love listening to you.
First, have them listen to this short video: https://www.terrysavage.com/wp-content/uploads/2022/10/Terry-Talks-Wills-Trusts-Estate-Planning.mp4
If they own a home together, the house should be re-titled in the name of their Revocable Living Trust. And the mortgage lender will have to be notified of the change in title. This does NOT necessitate re-financing, just re-papering the loan. The trust uses one of their SS numbers so no other change is necessary.
And the attorney will create a “pour over will” which basically specifies that anything not specifically named in the trust will go into it at death, to be distributed by the trustees. That would include their car.
Do NOT make the trustee the beneficary of any IRA or retirement plan. You lose some valuable tax benefits by doing that. But make sure that the individual beneficiaries on these plans and life insurance are correct and up-to-date.