- Jurisdiction
- Oregon
Hi! I have a complicated situation regarding establishing a trust deed to protect money that I invested in a house with my partner that is not in my name. Quick back story: My partner (romantic) and I decided to move in together and I would sell my house while she would sell an investment property and then do a 1031 exchange for a new property. The intent was to move into the new property and hold it for 2-3 years and then assume it as our primary residence. My partner's name is still on another property that she declares as her primary residence to satisfy the laws. Because of the 1031 exchange, my name could not be on the loan or deed. I sold my house and have put over $125k into the new property (lender not aware), but have no legal agreement signed with my partner about the money. It is all a verbal agreement along with an agreement that I own a certain share of the house. I now see this was a bit reckless of me to do this without any legal contracts in place on top of me paying for half the monthly mortgage, upkeep on the house and more than 50% of the utilities. I'm now scared to death that if something happens to her or me or us that my $125k+ will not be recognized by a probate court and my daughter (my sole heir) would be SOL. People around me have said that my partner and I need to get to an attorney ASAP to 1)find a way to legally protect my investment in the event of death or separation and 2)draft a legal agreement regarding the ownership of the house, taxes, market value increases, decision making, eventually having my name go on the deed, etc. My partner wants to take her time to have her tax guy review our situation and then have his attorney friend weigh in with recommendations. It is my understanding, that since we are not married that the attorney can only represent the interests of my partner. I told my partner that I need to proceed with the legal process to protect my investment ASAP and I'm ok with taking our time (in the next month or so) to have the legal house ownership agreement drafted and signed.
With that said, I've had business associates suggest a trust deed be established for the amount of my investment + interest and applied to the property. That is the best thing to do to protect my interest with my name not being on the deed. In case something happens, I am or my heirs are awarded that deed when the house is dealt with. My partner is against the trust deed idea and believes a living trust would cover us legally. In the mean time, my partner has told me that a handwritten promissory note or even a verbal agreement is legally binding in the courts to protect my investment. I am not comfortable with this. I have explained to her that in this situation, her investment and asset is 100% legally covered because her name is on it while my investment is 100% not covered.
I welcome any thoughts, suggestions or recommendations regarding my complicated mess. My goal is to have my investment legally tied to the house so that the distribution of assets is automatic at the time of one or both of our passing or due to separation. Thanks!
With that said, I've had business associates suggest a trust deed be established for the amount of my investment + interest and applied to the property. That is the best thing to do to protect my interest with my name not being on the deed. In case something happens, I am or my heirs are awarded that deed when the house is dealt with. My partner is against the trust deed idea and believes a living trust would cover us legally. In the mean time, my partner has told me that a handwritten promissory note or even a verbal agreement is legally binding in the courts to protect my investment. I am not comfortable with this. I have explained to her that in this situation, her investment and asset is 100% legally covered because her name is on it while my investment is 100% not covered.
I welcome any thoughts, suggestions or recommendations regarding my complicated mess. My goal is to have my investment legally tied to the house so that the distribution of assets is automatic at the time of one or both of our passing or due to separation. Thanks!