A California homeowner transfers their property into a revocable living trust, naming themselves as trustee. A lender is asking whether the homeowner can refinance the property without first removing it from the trust. Which statement correctly describes the homeowner's authority?
Correct Answer
B) Yes, because the power to revoke the trust includes the power to sell, refinance, or retitle trust property at any time
Under California Probate Code §15400, a trust is presumed revocable unless expressly made irrevocable. The trustor of a revocable trust retains the power to revoke, amend, or modify the trust at any time during their lifetime. This reserved power encompasses the authority to sell, refinance, or transfer trust property without needing approval from beneficiaries, whose interests remain contingent and unvested while the trustor is alive.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Setback requirements are zoning regulations that specify the minimum distance a building or structure must be set back from property lines, streets, or other boundaries. They ensure adequate light, air, and space between structures.
Spot zoning is an illegal or improper rezoning of a small parcel of land that is inconsistent with the surrounding zoning and the comprehensive plan. It benefits an individual owner rather than the community as a whole.
Subdivision regulations are local government rules that control the division of land into smaller parcels for development or sale. They ensure proper infrastructure, lot sizes, and public improvements are provided.
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