Liz Weston: Trust home transfer won’t require new mortgage qualifications – About Your Online Magazine


Dear Liz: My father created an investment fund that included his home, which has a mortgage on it. The creditor accepted the transfer of the house to the trust. Dad passed away recently, so the house must be transferred to my sister and me. Can the creditor activate the maturity clause on the sale? Or make me or my sister qualify for the mortgage?

Answer: A federal law known as Garn-St. The Germain Depository Institutions Act of 1982 details a number of situations in which creditors are unable to comply with the due clauses in the sale, including when a home passes to a relative or joint tenant, said Jennifer Sawday, a real estate planning attorney in Long Beach. The law applies to residential properties with four or fewer housing units.

You and your sister will not have to qualify for a new loan, but can continue to make payments under the current mortgage terms. If you cannot afford the payments, you will need to consider other options, such as refinancing or selling the home.

Dear Liz: Due to the pandemic, I did not work in 2020. Can I contribute to a husband IRA in 2020, since my husband still has an income and will be contributing to his Roth IRA? Does it need to be a separate account from my existing IRAs?

Answer: As long as your husband has an income, you can contribute to your IRA. You do not need to set up a separate account to make this conjugal contribution.

Whether or not yours contribution is deductible it will depend on your income and whether your husband is covered by a professional retirement plan, such as 401 (k). If he is not, his marital contribution is fully deductible. If he is covered, his ability to deduct his contribution will be eliminated for a modified adjusted gross income of $ 196,000 to $ 206,000.

Liz Weston, a certified financial planner, is a personal finance columnist for NerdWallet. Questions can be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or using the “Contact” form at asklizweston.com.

Paula Fonseca