Did a pair of revocable trusts for a couple. Several years after setting them up the wife's trust purchased the current homestead from a third party.

Wife's trust is now re-financing.

Due to Sec. 561.3 the lender is asking the husband to execute the mortgage. Husband has some physical difficulties but has given a POA to the wife, so she is able to execute it.

I'd like to avoid this process in the future. So I'm considering having the husband execute a QCD to the wife's trust, relinquishing his homestead rights.

In fact, I'm wondering whether I should always advise my clients to do this in similar situations. 

 

Any reason not to do so?

Craig R. Hastings

Hastings, Gartin & Boettger LLP

409 Duff

Ames, IA  50010

515-232-2501