The Guru Trick to “Beat” the Due on Sale Clause (and Why It Can Backfire)

Using a trust to “hide” transfers isn’t as clever as they want you to believe.

Here’s how the guru script goes:

“Don’t worry about the Due on Sale Clause. Just transfer your property into a trust. The bank can’t do anything about it.”

It sounds smart.
Even has a sprinkle of truth.

But let’s break it down.

Yes, the Garn-St. Germain Act gives protections for inter-vivos trusts (living trusts) when you transfer property for estate plannin…