Transferring personal residence to a Trust

[Michael Lauther]

I am considering transferring My personal residence currently owned by Myself and My wife to a trust to benefit my wife and children in the future. I have a 40 year mortgage for $830,000 paying interest currently 2% going to 5% in ten years on and principle on 581000 with a balloon of 249,000 interest free due in 40 years. I want to preserve these terms and the property in the event of my "premature death". What are the advantages of a trust owning the property and will the tax deductions be preserved if I make This transfer?

[Mitch Kronowit]

Not sure about your tax question, but transferring your property to a trust in which you still remain the beneficiary (while alive) is termed an "inter vivos" trust and shouldn't affect your loan at all. The primary advantage of doing this is avoiding probate upon your death. The house would remain titled under the living trust and your successor trustee, likely your wife unless you pass together, would then take over as the sole trustee.