If real estate is included in a revocable trust the , ismortgage paid by the other assets in the trust before assets are distributed?
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If real estate is included in a revocable trust the , ismortgage paid by the other assets in the trust before assets are distributed?
My mother has a revocable trust that includes a condo with a $60K mortgage, plus approximately $100K in IRA accounts. In the event of her death, how do we ensure that the mortgage balance is paid by other assets in the estate before the assets are distributed?
Asked on October 5, 2011 under Estate Planning, Florida
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
This is not an easy question to answer with out reading the trust document to make sure that that is what your Mother's wishes are in the first place. Does she have a Will as well that directs anything here? Does the trust state that the trustee is to pay off the mortgage with the liquid funds? What does it say to do with the property? Sell it? Who is the residual beneficiary of the condo? They may be taking it subject to the mortgage. It may be a good idea for you to discuss the matter in depth with your mother and to try and figure out what she wants to happen before it is too late. Good luck.
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