When to use Trust Letter to Mortgage Lender
If you have decided to benefit from including a living trust within the broader context of your estate plan, you will need to keep the needs of that trust in mind as you evaluate your finances from now on. Depending on your circumstances, you may be able to alter the terms of the trust, if doing so proves necessary. But ordinarily, the primary practical challenge associated with maintaining a living trust involves transferring property, income and/or alternative assets into the trust once it has been established. Of course, not every living trust requires this kind of routine attention and financial maintenance. However, if you find yourself wanting to transfer a piece of real estate to your living trust, you will need to take a few steps in order to finalize that transaction. Specifically, you may need to submit a trust letter to your mortgage lender before your real property can be transferred from your personal control to your living trust.
If you need to transfer real property from your personal control to your living trust, you can use this letter to achieve that aim in an efficient, professional way. Real estate transactions generally need to be documented in specific ways. Alerting your mortgage lender to this transfer is therefore important for record-keeping and regulatory reasons. It is worth noting that your mortgage lender may require additional documentation later in the process of transferring your real estate to your living trust. However, submitting this form will begin the process of finalizing this transition. Please keep a copy of your request for your files in case you ever need to reference it in the future. Once completed, you may want to file all related paperwork with the rest of your estate planning documentation.