The Garn-St. Germain Depository Institutions Act of 1982 plays a critical role in the flexibility of estate planning, particularly when using Revocable Living Trusts.

The Garn-St. Germain Depository Institutions Act of 1982 plays a critical role in the flexibility of estate planning, particularly when using Revocable Living Trusts. This legislation prohibits lenders from enforcing due-on-sale clauses in specific cases, such as when a property is transferred into a Trust where the borrower is still the beneficiary and occupant. This exemption means that homeowners can place their real estate into a Revocable Living Trust -- commonly used to avoid probate and maintain privacy -- without triggering the loan's acceleration. By safeguarding these transfers, the Act ensures that individuals can effectively use Trusts for estate planning without risking financial penalties or disruptions to their mortgage agreements.

If you have questions about Revocable Living Trusts or any other aspect of estate planning, give us a call at 253.858.5434 to set up an appointment today. We proudly represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.