Garn-St. Germain

The Garn-St Germain Depository Institutions Act of 1982 provided significant changes to the banking industry, including a provision that allows homeowners to transfer their home to a trust without triggering certain types of loan acceleration. This provision has become an important tool for homeowners who want to transfer their home to a trust for estate planning purposes.

One of the main benefits of transferring a home to a trust is that it can help protect the home from creditors and estate taxes. By transferring the home to a trust, the homeowner can remove the home from their individual estate and place it under the protection of the trust. This can help reduce the tax liability of the estate and protect the home from creditors.

Another benefit of transferring a home to a trust is that it can help simplify the probate process. Probate is the legal process of distributing a person’s assets after death. By transferring the home to a trust, the homeowner can avoid the probate process and ensure that the home is distributed according to their wishes. This can be especially important for families with young children or individuals with complex financial portfolios.

The Garn-St Germain Act also provides certain protections for homeowners who transfer their home to a trust. The act prohibits lenders from accelerating a loan, meaning calling the loan due, because of the transfer of the property to a trust. This protection can be particularly important for homeowners who have a mortgage on their home.

The Garn-St Germain Depository Institutions Act of 1982 provides important protections for homeowners who want to transfer their home to a trust for estate planning purposes. By transferring the home to a trust, homeowners can protect the home from creditors and estate taxes, simplify the probate process, and ensure that their wishes are honored. An experienced estate planning attorney can help you navigate the complex world of estate planning and create a plan that suits your unique needs, including transferring your home to a trust.