interest deduction question - necessary to file with court?

[longpants]

What is the name of your state (only U.S. law)? Maryland

my daughter owns a condo - there is a trust in her name from which i as the trustee, would want to loan her the money to pay off her mortgage - then have her repay the trust with interest.

in order for her to be able to continue deducting the interest on her taxes, do we need to actually file anything with the court (state of maryland) -or will a notarized personal guaranty document between us suffice?

 

[FlyingRon]

I'm confused. What advantage does she have to be in debt to the trust as opposed to the bank? If the trust is for her benefit, why can't it be used to provide her housing costs? What does the trust say about this?

If she wants to deduct it, the trust loan would need to be recorded as secured by the house
(just like a mortgage).

You are well behooved to use a lawyer who understands both trusts and real estate issues.

 

[longpants]

"recorded" ?

"recorded" as in filed with the court, or just have a signed, and notarized document on file?

 

[FlyingRon]

Recorded as filed with the appropriate agency (usually the county land records department at the courthouse). As I said, like a real mortgage.