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Grant Deed/Revocable Living Trust/Title to Home


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#1 MoolahLover

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Posted 18 December 2012 - 06:06 PM

If a person in California had a will and a living revocable trust, and they owned a home. Then, ten years before they died, they took out a loan against the house for $50,000. They executed a grant deed from the Trustee of the Trust to the Person as an Unmarried Woman. Then the woman made the $50,000 loan as an individual.

Would the grant deed just release the $50,000 from the trust so the loan would be in the woman's name and the rest of the house would remain in the trust? Or at that point, did the woman completely take the house out of the trust, and if she wanted it back in as trust property, would she have to do another Grant Deed again afterwards?

It she had to put it back into the trust, but never did, then would her successor trustee still be the true owner of the house after the death of the individual woman?

I hope this makes sense, I don't know anything about the paperwork involved with buying and selling a house, titles, any of that stuff. Thanks for your help.

#2 adjusterjack

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Posted 18 December 2012 - 09:11 PM

If a person in California had a will and a living revocable trust, and they owned a home. Then, ten years before they died, they took out a loan against the house for $50,000. They executed a grant deed from the Trustee of the Trust to the Person as an Unmarried Woman. Then the woman made the $50,000 loan as an individual.

Would the grant deed just release the $50,000 from the trust so the loan would be in the woman's name and the rest of the house would remain in the trust?


No.

The deed transferred the ownership of the property in its entirety to the individual.

Or at that point, did the woman completely take the house out of the trust, and if she wanted it back in as trust property, would she have to do another Grant Deed again afterwards?



Yes, she would have had to have deeded the property back into the trust.

It she had to put it back into the trust, but never did, then would her successor trustee still be the true owner of the house after the death of the individual woman?



Maybe.

But it would have nothing to do with the trust or the person's position as trustee.

If the deceased had a will in addition to the trust then the property would go to whoever was specified in the will. If it happened to be the trustee of the trust it would go to that person but that would have nothing to do with the trust or that person's position as trustee.

If the deceased died without a will (intestate) the property would go to heirs in accordance with the state intestacy laws. If that trustee happened to be the heir under intestacy, that person would get the property but, again, that would have nothing to do with the trust or that person's position as trustee.

In any case the property would likely have to be probated since it was owned by the individual and not the trust.

Warning: Legal issues are complicated. Explanations and comments here are simplified and might not fully explain the ramifications of your particular issue. I am not a lawyer. I do not give legal advice. I make comments based on my knowledge and experience. I guarantee nothing. If you act on my comments without the advice of an attorney, you do so at your own risk.


#3 pg1067

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Posted 19 December 2012 - 07:21 AM

If a person in California had a will and a living revocable trust, and they owned a home.


Who are "they"? The person with the will and trust and who else? How did "they" jointly own the home? As tenants in common or joint tenants? What is the relationship between the will and the trust (i.e., is the will a pour-over will that leaves all assets not already in the trust to the trust)?


They executed a grant deed from the Trustee of the Trust to the Person as an Unmarried Woman. Then the woman made the $50,000 loan as an individual.


"They" deeded the property to "the Person"/"the woman"? Huh? Is "the Person"/"the woman" part of "they"? Or is "the person"/"the woman" yet another person? Why would "they" deed the property to "the Person"/"the woman" if "they" were the ones who took out the loan?


Would the grant deed just release the $50,000 from the trust so the loan would be in the woman's name and the rest of the house would remain in the trust?


Sorry, but this makes no sense at all. Aside from the ambiguity that results from your use of unclear pronouns (as illustrated by my comments above), I don't know what you mean by "release the $50,000 from the trust." Is the trust making the loan? In any event, whether the trust still retains any portion of the property depends on what the deed says.


Or at that point, did the woman completely take the house out of the trust, and if she wanted it back in as trust property, would she have to do another Grant Deed again afterwards?


This appears to be basically the same question.


It she had to put it back into the trust, but never did, then would her successor trustee still be the true owner of the house after the death of the individual woman?


If the trust, acting through the trustee, deeded the property to someone else, then the property is no longer trust property.


I hope this makes sense


As my comments above indicate, it doesn't. Depending on how one reads your post, it may be that there's only one person involved in all of this (and that you're misusing the plural pronoun "they"), or it could be that there are at least four persons involved ("they" is at least two persons, "the Person"/"the woman" would be a third person, and the trustee may be yet a fourth). I'm not trying to be unnecessarily critical of your writing, but if we can't clearly understand what you write and have to guess about what you mean (as the prior response appears to have done), it's impossible to be clear in responding.

#4 Guest_FindLaw_Amir_*

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Posted 19 December 2012 - 10:35 AM

This is a matter you may wish to discuss with a local Real Estate Lawyer for clarification.




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