Set up Trust or Add name to Deed

[Stephen N. Soliman]

Hi All, I’m new to investing and am getting creative with getting my finances in order. My original plan was to add my name to the deed of a house owned by my mother which has a minimal mortgage remaining(about $50k). I would then take out a HELOC to leverage the equity she has built up over the years (current value of the home is about $800k) for a down payment on an investment property or two. I was recently advised that putting the house in a trust, rather than adding my name to the deed, and putting myself as a beneficiary would be smart for estate planning purposes and give me access to commercial loan options as well as residential. However, I want to know if there is a major difference between the amount I would qualify for on the HELOC if I were to apply as a Trust or as an individual. I would assume either way the bank would be looking at my income to debt ratio and make a judgment that way. I appreciate the feedback!