Most people who have a trust don’t need it, or even really understand why they have it. I think it makes people feel “rich” to have a “trust.”

Anonymous wrote:

Anonymous wrote:Pull the home out of the trust, complete the loan, put the home back in.

This is what I was told had to be done.

It's one reason I don't recommend people bother establishing trusts (the annoyance of doing that is more than the annoyance of probate, but ymmv).

+1 My husband's grandmother put her assets in trust, and it's been a pain for my in-laws to unravel now that she's passed. They were saying probate would have been easier, especially because she didn't really have so many assets to warrant a trust. That's why we've held off on doing one til we're richer.

Anonymous wrote:Pull the home out of the trust, complete the loan, put the home back in.

This is what I was told had to be done.

It's one reason I don't recommend people bother establishing trusts (the annoyance of doing that is more than the annoyance of probate, but ymmv).

Pull the home out of the trust, complete the loan, put the home back in.

Anonymous wrote:Our home and second home and life insurance policies are in a trust. Getting home equity loans has never been a problem.

Can you let me know which banks you have used? Thank you!

If the home is in a trust, the loan needs to be made to the trust for the trust to use. Many banks don't want to do this.

Our home and second home and life insurance policies are in a trust. Getting home equity loans has never been a problem.

I read the same thing a few years ago and asked a few contacts who had dput their property in a trust if they had heard about this and all said they hadn't but clearly there's truth to it. We are in the process of finally getting our various estate docs together and this is something I plan to bring up and if true will stop us from putting our property in a trust as we have a number of investment properties and need to easily move money around for renovations etc.

Anonymous wrote:A friend of mine is having the same issue in another state. She is not going to undo the trust though.

Bother...I was hoping this was just a fluke thing.

A friend of mine is having the same issue in another state. She is not going to undo the trust though.

FWIW I did reach out to the lawyer to see their thoughts, but haven't heard back yet.

When my son was born a few years ago, my husband and I created a will and trust, and the house was part of it. We are now trying to get a loan to remodel. After going through weeks of documents and appraisals and such, the loan was approved yesterday. The bank then called today and said they pulled the (deed? Title?) and saw that it's in a trust, and they won't loan to trusts in Virginia so they won't give us the money until we give them a deed without the trust.

Is this bank just weird? Or do we need to go back to the lawyer and undo the trust? (Which will infuriate me!) I am frustrated that we lost 6 weeks of time and will have to start over on finances, but I'd rather that then undo the trust I think.