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Liz Weston: Trust home transfer won’t require new mortgage qualifications

Dear Liz: My father founded a living trust that included his house where the mortgage is. The lender accepted the transfer of the house on trust. Dad passed away recently, so the house should be transferred to my sister and me. Can a lender initiate a maturity clause? Or should I or my sister qualify for a mortgage?

Answer: Federal law known as Garn-St. The 1982 Germain Depository Institutions Act details several situations in which lenders are unable to enforce sale clauses, including when a home is transferred to a relative or joint tenant, said Jennifer Sawday, a Long Beach estate planning lawyer. The law applies to residential buildings with four or fewer housing units.

You and your sister will not have to qualify for a new loan, but you can continue to pay according to your current mortgage terms. If you can’t afford the payments, you’ll need to consider other options, such as refinancing or selling the house.

Dear Liz: Because of the pandemic, I did not work during 2020. Can I contribute to the IRA for spouses for 2020 because my husband still has income and will contribute to his Roth IRA? Does it have to be a separate account from my existing IRAs?

Answer: As long as your spouse earns income, you can contribute to your IRA. You do not have to open a separate account to contribute.

Whether it’s yours contribution is denied it will depend on your income and whether your spouse is covered by a workplace retirement plan, such as a 401 (k). If not, your spouse’s contribution may be completely deducted. If covered, then your ability to deduct contributions is phased out for a modified adjusted gross income of $ 196,000 to $ 206,000.

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