Elder Law Answers
Can I Create a Special Needs Trust in My Will to Benefit My Husband?
I am age 74. Can I create a special needs trust in my will to benefit my husband if he ever needs Medicaid assistance to p...
Read moreIf I Put My House in Trust, Can I Still Withdraw From My Home Equity Loan?
- October 22nd, 2014
Q
I have a mortgage and a home equity loan outstanding. If I put the house in an irrevocable trust, can I still withdraw from my home equity loan, or will only the trustee be able to make withdrawals?
A
If you transfer your home to an irrevocable trust, the trust will be the owner. Doing so may technically violate the terms of the mortgage and home equity loan, making them both immediately payable. However, if you continue making the monthly payments. in all likelihood the bank will be none the wiser. In terms of withdrawing additional funds from the home equity loan, you (or someone you hire) would have to read the fine print to be sure, but again if no one is the wiser, you can probably do so. That said, doing so may undermine the purpose of the trust depending on your purpose for creating it – usually Medicaid, creditor protection or estate tax planning. To argue for these purposes that you no longer own the property but to continue to withdraw equity seems a bit inconsistent.
Local Elder Law Attorneys in Ashburn, VA
Jeffrey Hammond
Hammond and Associates, LLC, Elder Law, Estate Planning, Wills, Trusts, Probate
Bethesda, MD
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Jeffrey Hammond
Hammond and Associates, LLC, Elder Law, Estate Planning, Wills, Trusts, Probate
For Jeffrey Hammond, the practice of Elder Law is personal. Jeff’s many years of experience in law and in business did not prepare him for the crisis he faced in 2005 and 2006 when his father suffered a stroke and both of his parents suffered from dementia and other medical problems. At that time, Jeff began an i...
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Mindy Felinton
Felinton Elder Law & Estate Planning Centers
Mindy Felinton concentrates in the areas of Medicaid planning, Veterans' Benefits, asset protection, nursing home planning, elder law, wills, estate planning, trusts, living wills, powers of attorney, probate administration and trust administration and began her legal career 30 years ago as an Assistant State Attorney...
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Meet Judith Mitnick
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Judith Mitnick
Needham Mitnick & Pollack, PLC
Judith Mtinick is well known for acting as a guardian, conservator, trustee or agent on behalf of clients or by court appointment. This experience gives her a wide perspective and extensive practical knowledge that she uses when advising clients in drafting their planning documents. Her experience, as a court appointed...
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