Yes, You Can (and Should) Put Your Mortgaged Home Into a Trust
Yes, you absolutely can. This is a very common concern for Hawaii homeowners, but federal law protects you in this exact situation.
The Law is on Your Side
Under a federal law called the Garn-St. Germain Depository Institutions Act, lenders are generally prohibited from triggering a "due-on-sale" clause when you transfer your primary residence into a Revocable Living Trust.
As long as you meet these three simple conditions, your mortgage stays exactly as it is:
It’s a Residential Property: The home has fewer than five units (this covers most single-family homes and condos in Hawaii).
You are the Beneficiary: You remain the person who benefits from the trust during your lifetime.
You Still Live There: The transfer doesn't involve a change in who actually occupies the home.
How it Works in Practice
When we move your home into a trust, your daily life with the mortgage doesn't change:
Payments: You continue to make your monthly payments just as you do now.
Interest Rates: Your interest rate does not change. The bank cannot use this as an excuse to hike your rate.
Property Taxes: You keep your Hawaii Homeowner’s Exemption (which lowers your property taxes) as long as the home remains your primary residence.
Insurance: You simply notify your insurance carrier to list the Trust as an "additional insured."
Why You Should Do It Anyway
If you have a mortgage and don't put the home in a trust, the situation is actually much riskier for your family. If you pass away, the mortgage still needs to be paid, but your family might be locked out of the house or unable to sell it because the title is stuck in a 12-month probate battle.
By putting the home in a trust now, you ensure that your successor can immediately step in, manage the mortgage, and keep the home safe for the ohana without waiting for a judge’s permission.