Q: I will inherit my parents’ home when they go to the great beyond. I am told that I can assume their mortgage — which has a great rate since they are so smart and refinanced when the rates were low. However, with all the problems with getting homeowner’s insurance in California, I am not sure if I can get insurance and, if I can, what the cost will be. Can I also assume their homeowner’s insurance?

A: To be completely specific, you may or may not be able to “assume” your parents’ mortgage depending on how the mortgage was written. If the mortgage was written as an assumable mortgage, then you may be able to work with the lender and have the mortgage transferred to you. You, personally, would need to financially qualify for the loan and then you, personally, would be responsible for the payment of the mortgage. However, recent banking laws provide that when real estate is transferred to a relative upon the death of a borrower, lenders can no longer enforce the due-on-sale (or due-on-transfer) clause of a mortgage. So, if it is an assumable loan and you want to go that route, that is one option. If it is not assumable or you cannot qualify to assume the loan, then you can continue to make the mortgage payments and the lender cannot force a full payoff or take other actions against you unless you default on the payments.

As for homeowner’s insurance, no, it is not assumable. When the real estate is transferred to you, you will need to obtain new homeowner’s insurance. I recommend you check with the current insurer now to see if the insurance will be rewritten when the property passes to you. If, like so many companies, the insurer is not writing new policies in California, check with other insurance companies and keep in mind that you can obtain coverage through California Fair Plan Property Insurance (www.cfpnet.com). Keep in mind that if you use the California Fair Plan, you will need additional insurance policies to cover liability and other losses that are not covered in the Fair Plan. These other losses are usually covered in homeowner’s insurance policies but not so with the Fair Plan.Q: Why are banks so unbearably difficult? I helped my mom take care of her bills and finances before she died. After her death, I handled the distribution of the assets in her trust and took care of all my trustee duties. Two years have passed, and I just found out that she has three more bank accounts and a safe deposit box! These accounts are with the same bank where mom and I had her other accounts while she was living and which I closed when I distributed everything out. The bank never told me about the “other accounts” or the box. Now I am told that I need to do a probate to gain access to these assets. Why didn’t the bank tell me about these other accounts? This is outrageous!

A: It is unbelievable, right? I was recently told after a client died that unless his accounts already have my name on them or they were titled to his trust (I was stepping into as his trustee), that I would need a “court order” for the bank to give me any information or access to my client’s other accounts. This is so contrary to the reasons we go through the time and expense to establish a trust in the first place and, as your situation shows, it can result in significant costs and delays.

Banks are highly regulated and scrutinized around privacy laws and we, the consumers, are made to bear the brunt of the problems these regulations can create. The best way to avoid this kind of problem is to make sure that most, if not every, account you have is retitled to your trust or, at the very least, that your trustee is fully aware of all your accounts and any safe deposit boxes you may own.

Liza Horvath has over 30 years of experience in the estate planning and trust fields and is the president of Monterey Trust Management, a financial and trust management company. This is not intended to be legal or tax advice. If you have a question call (831)646-5262 or email liza@montereytrust.com