ARTICLES & NEWS

FAMILY REAL ESTATE ARTICLES

How to Transfer Property Out of Trust for Beneficiary Deed

By Christopher Combs | February 22, 2017

How to Transfer Property Out of Trust for Beneficiary Deed   Question: My mother is the trustee of her revocable living trust (“RLT”), and I am the sole beneficiary. The only asset in the RLT is my mother’s Sun City home. My mother wants to execute a beneficiary deed to me for her home which will not be effective until her death. Can my mother, as the trustee of her RLT, execute a beneficiary deed to me? Or does my mother, as the trustee of her RLT, first have to deed the home to herself individually, and then execute a beneficiary deed to me…

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Revocable Living Trusts in Arizona

By Christopher Combs | August 22, 2016

Question: My parents had an attorney draft a revocable living trust more than 20 years ago. In this revocable living trust my sister and I were the co-trustees and the co-beneficiaries. My parents transferred, by a deed, their Chandler home into this revocable living trust. Since that time my sister has had significant drug problems, and has become estranged from my parents. Three years ago, and with the help of the Internet, my parents drafted a second revocable living trust which named me as the sole trustee and the sole beneficiary. Both of my parents have recently passed away. Inasmuch…

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Due on Sale Clause Does not Apply to Transfer to a Spouse

By Christopher Combs | March 15, 2016

 Due on Sale Clause Exemptions   Question: After I was divorced three years ago, I purchased a home in Surprise. The title to the home was in my name only. Last year I married again and added my new wife to the title to the home. The mortgage loan, however, is still in my name. The mortgage payments are current. If the bank discovers that my new wife is on the title to the home, will the bank require immediate full payment of the mortgage loan?   Answer: Most mortgage loans have a “due on sale” clause allowing the mortgage…

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The Dangers of Having a Relative Pay Your Mortgage

By Christopher Combs | March 7, 2016

 The Dangers of Having a Relative Pay Your Mortgage   Question: After I was transferred to San Diego two years ago, I let my brother stay in my home in Avondale. Instead of paying rent to me, my brother agreed to make the mortgage payments for the home. Although I knew that my brother was having trouble recently making some of the mortgage payments, my brother promised me that he would keep the mortgage current. My brother called me last week, however, to say that there had been a foreclosure of the home. I am upset with my brother because, if this…

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Depreciation Deductions Reduce Tax Basis

By Christopher Combs | March 2, 2016

Depreciation Deductions Reduce Tax Basis   Question: For more than twenty years my father has owned a four-plex apartment building in east Mesa. My father is terminally ill, and his doctor has told him that he only has a few weeks to live. My father is trying to get his affairs in order. I am his only child, and he wants to deed this four-plex apartment building to me now. When I get the deed to me for the four-plex apartment building I intend to sell the building immediately, as I do not want to be a landlord. Is there an advantage…

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Divorce Order Will Remove Husband From Title

By Christopher Combs | February 29, 2016

 Divorce Order Will Remove Husband From Title   Question: My husband recently left me after 28 years.  In the divorce proceedings I am desperately trying to be awarded our Glendale home.  If the court should award me our Glendale home, how would I get my husband’s name off the title?   Answer:  If you have a final court order awarding you the home, the recording of this court order should be enough for a title company to insure the title.  If not, the court can order your husband or the clerk of the court to sign a deed to you which…

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Tax Exclusion Also Available for Family Revocable Living Trust

By Christopher Combs | February 22, 2016

 Tax Exclusion also Available for Family Revocable Living Trust   Question: My wife and I have owned our Flagstaff home for more than twenty years. Several years ago we transferred the home to our family revocable living trust. We are co-trustees of this revocable living trust. If we sell our Flagstaff home we should have a capital gain of at least $350,000. Will we still qualify for the $500,000 exclusion from capital gains on the sale of our home, even though the home has been transferred to our revocable living trust?   Answer: Yes. Even though the home is titled now…

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Arizona Property Lien Law Applies to Recording of Invalid Mortgage

By Christopher Combs | February 9, 2016

 Arizona Property Lien Law Applies to Recording of Invalid Mortgage   Question: Three years ago in the divorce decree I was awarded our Prescott home.  I recently signed a contract to sell the home.  Several days later the title company said that I gave my ex-wife a $50,000 mortgage on the home.  The title company sent me a copy of this $50,000 mortgage, and my ex-wife had obviously forged my name.  When I contacted my ex-wife, she apologized.  She said that she had forged my name on this $50,000 mortgage when she was very angry with me after our divorce. …

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