Residence Deed Recording
The memo explains that transferring a primary residence into a revocable trust or a Florida Community Property Opt‑In Trust is a crucial step for an effective estate plan, but the process often stalls because lenders, HOAs, and insurers rarely respond to notice letters. It outlines the federal protection under the Garn‑St. Germain Act, which bars lenders from enforcing due‑on‑sale clauses when the transfer is to a revocable trust, the borrower stays a beneficiary, and the property remains a residence. The document stresses that the residence status is the key condition; converting the home to a rental would void the protection. For Florida owners, it clarifies that a properly structured transfer preserves homestead benefits—creditor protection, ad valorem tax exemption, and the Save‑Our‑Homes cap. The memo describes the typical silence from third parties as operational rather than substantive, and then presents a decision framework: recording the deed carries a low, legally constrained lender risk, while not recording risks probate, loss of step‑up in basis, and administrative burdens. Insurance alignment is highlighted as the most immediate practical concern. Finally, the attorney requests client confirmation that they understand lender risk, the consequences of delay, and that the property will remain a residence before proceeding without third‑party responses.
Topics
Estate Planning Begins with Asset Alignment: The Central Role of the Residence
Why the family home is the most important asset to align with an estate plan and how transferring it into a trust is a foundational step.