Property Ownership
In Montana, property that is held in a 'revocable living trust' is:
AConsidered personally owned by the grantor for tax and legal purposes and may be sold or mortgaged by the trustee✓ Correct
BImmune from all creditor claims
CAutomatically distributed to beneficiaries upon creation of the trust
DProhibited from being used as security for a mortgage
Explanation
Property in a revocable living trust is still considered owned by the grantor (trustor) for most purposes—it is part of the grantor's estate for tax purposes, and the trustee may sell or mortgage the property. The trust avoids probate upon the grantor's death.
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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
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