Mportant Information About Your Revocable Living Trust (Page 4 of 10) in pdf

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, P.C.

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If the real estate is subject to any debt (that is, if there is a deed of trust or mortgage against the

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property), the note and deed of trust or mortgage documents should be checked to see whether

there are any restrictions on transferring the property. Those documents may contain a “due on

transfer” clause, allowing the lender to accelerate the balance due on the loan if you transfer the

property. If the property is your residence, the lender might be prohibited by law from enforcing

a due on transfer clause when you transfer the residence to your revocable trust, but you will

want to check that before you make the transfer. If there is no exception available under the due

on transfer clause, you might want to ask the lender if it will waive its right to accelerate the loan

with respect to the transfer to your trust. If you do obtain a waiver, be sure it is in writing.

If you and your spouse own real property as joint tenants with right of survivorship, it may be

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advisable to transfer the property to one or both of your trusts. However, you may first want to

transfer title to only one spouse, and then to that spouse’s trust. You should discuss joint tenancy

real estate with us before making a transfer.

If you and your spouse own assets as “tenants by the entireties” in a state outside Colorado,

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changing title to that property may terminate any protection from creditors of only one spouse

that such a manner of titling can provide in certain states (including Florida and Maryland, but

also others).

If you own real estate located in a state other than Colorado, it may be advisable to transfer that

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real estate to the trust, but you will have to comply with the real estate laws of the state where the

property is located. Therefore, if you have real estate in another state that you want to transfer to

your trust, please contact us.

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If you transfer real property to your revocable trust, you should add the trust to your

homeowner’s insurance so that it will be treated as an additional insured. You should also

request a rider to your title insurance policy so that the revocable trust will be included in the

coverage, as owner of the property.

There are a number of technical issues relating to real estate titles. As a result, we generally recommend that

you not try to handle transfers of real estate to your trust by yourself, but let us help you make those transfers.

Stocks and Bonds

Stocks and Bonds Held in Brokerage Accounts

If you have stocks or bonds that are not registered directly in your name, but are held for you by a brokerage

firm (sometimes called a “street name account”), you do not need to transfer the individual stocks or bonds into

your trust. Instead, you will simply need to transfer the brokerage account into your trust. Your broker will

have his or her firm’s forms to do this, and can help you complete the forms. Of course, if you have any

questions, please let us know.

Mportant Information About Your Revocable Living Trust Page 4

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