Jim Chad Posted March 14, 2016 Posted March 14, 2016 This has to be the oddest question I have ever asked. The law allowing banks to put into mortgages a "due on sale" clause, has an exception for trusts. This exception voids this clause when being transferred to a trust. Is a 401(k) Plan a trust for this purpose?
Peter Gulia Posted March 14, 2016 Posted March 14, 2016 Is the rule you're thinking of 12 U.S.C. section 1701j-3(d)(8)?https://www.gpo.gov/fdsys/pkg/USCODE-2014-title12/pdf/USCODE-2014-title12-chap13-sec1701j-3.pdf If so, its exemption doesn't apply concerning every trust but rather a trust that meets (at least) the two conditions stated by the statute. Just curious: How is the retirement plan's trust affected by the application or non-application of a mortgage's due-on-sale provision? Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com
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