Joint Trust and more

[S T]

This is probably more of a legal question, than a tax question, however, I know a few participants on the Board that might be able to provide some thoughts.

Scenario - Husband and wife - rev living trust - only item - house/residence
Husband passes away - wife survivor

Is there a requirement to file a correction on the deed to the RLT with only the surviving spouse? Recorded in the Rev Liv Trust name with h/w as trustees.

Houe/residence is encumbered with a mortage loan, in both the deceased husband and spouse - Mortgage company advises surviving spouse that she can assume the loan with paperwork provided. I do not understand this, as the surviving spouse is already named on the loan. Not sure what the original contract stated. Concern would be surviving spouse might not qualify for loan conditions due to "decrease" in income - and that mortgage company could possibly "call" the loan based on updated information on spouse only.

Any thoughts - not practicing legal of course - just general

Thanks

Sandy

[TAXNJ]

Yes

This is probably more of a legal question, than a tax question, however, I know a few participants on the Board that might be able to provide some thoughts.

Scenario - Husband and wife - rev living trust - only item - house/residence
Husband passes away - wife survivor

Is there a requirement to file a correction on the deed to the RLT with only the surviving spouse? Recorded in the Rev Liv Trust name with h/w as trustees.

Houe/residence is encumbered with a mortage loan, in both the deceased husband and spouse - Mortgage company advises surviving spouse that she can assume the loan with paperwork provided. I do not understand this, as the surviving spouse is already named on the loan. Not sure what the original contract stated. Concern would be surviving spouse might not qualify for loan conditions due to "decrease" in income - and that mortgage company could possibly "call" the loan based on updated information on spouse only.

Any thoughts - not practicing legal of course - just general

Thanks

Sandy

You are correct it is definitely a legal matter. Recommend a Tax Attorney not general attorney

[DonB]

Just my non-legal opinion. The name of the joint living trust does not change when death occurs. I don't see where the county records would change.

I'm not sure your client has a choice with the mortgage company. They know of the death and are asking(?) if she want to assume the loan.

[S T]

Thanks DonB for your non-legal opinion - I really appreciate it - I know we are not to practice Legal/Law, but sometimes clients approach us for information - So this post was for some information seeking

This happens to be Calif which is a Community Property State - only property in RLT is the Residence

I spoke with a Calif paralegal contact I know that primarily deals with Estates and Trusts, without the actual trust documents she feels no needed recording on the Residence, which is what I was thinking - Also retrieved several online legal viewpoints, and seems to be the same.

The Mortgage company and loan assumption is another story. Paralegal does not think it is necessary as the surviving spouse is already on the loan - Discussed with a Realtor connect I know - and he has not encountered this request.

So for now unless the Mortgage Co becomes adamant about updating records, we are ignoring - Seems like in talking with the client's daughter who is handling some of the financial affairs, precipatated from a change on the Homewoner's Insurance policy - Really!

Sandy