People refinance their homes for a number of reasons, whether it’s to lower their interest rate, change their terms or eliminate PMI. However, after refinancing, there’s an important step that many people forget once the lengthy paperwork is done: putting the home back into their trust.
If you had a revocable living trust before refinancing, there’s a likelihood it was taken out during the process. This isn’t a cause for concern and is actually standard practice for most lenders. The main issue? Your house will not automatically go back into the trust after the paperwork is complete. You need to manually transfer it back after closing.
If you forget this step, your home might not be included in your estate plan. If you’re goal is to avoid probate and keep things simple for your family, this is an especially important step. Not putting the home back into your trust can lead to complications down the road.
The good news? Retitling is usually a quick fix if you know how to do it.
If you’re not sure whether your home was put back into your trust after refinancing or need help updating your documents, call us today for a free consultation: (404) 409-5665.
Your trust can’t hold onto what it doesn’t own.
