THE MALDEN ADVOCATE–Friday, October 2, 2026 Page 11 OBITUARIES Subscribe to The Advocate: www.advocatenews.net DUE ON SALE CLAUSE AND IRREVOCABLE TRUSTS P eople are often concerned about a lender exercising the “due on sale clause” contained in their mortgage allowing a lender to call in the note and force a refinance of the property at a much higher interest rate. So many people have been locked in at 2.75% to 3.75% mortgage rates and they certainly would not want to be paying today’s mortgage rates approximating 7.00%. When trying to protect your home from a nursing home, you may very well decide to transfer it to an irrevocable Trust to start the five-year look back period. Five years after the transfer, the home will be protected as it would not be considered a countable asset for MassHealth purposes. Under 12 U.S.C. Section 1701(j)3(d)(8), a lender may not exercise a due on sale clause when a borrower transfers residential real estate (with fewer than 5 dwelling units) into an “intervivos” Trust where the borrower is and remains a beneficiary of the Trust and rights of occupancy do not change. An intervivos Trust is simply a Trust you create during your lifetime. An intervivos Trust can be revocable or irrevocable. Therefore, transferring your home into an irrevocable Trust should not lead to a lender exercising its due on sale provision. Your interest rate should be protected. We often will ask the lender to approve the transfer to the irrevocable Trust by providing the lender with a draft of the Trust. I have yet to see a lender exercise the due on sale clause when someone transferred the home to an irrevocable Trust when the home was encumbered by a mortgage. The Garn-St. Germain federal law passed in 1982 was designed to protect lenders by having federal law preempt State law that might have limited a lender’s right to exercise the due on sale clause. Subsequently, Congress enacted 12 U.S.C Section 1701j-3(d) which carved out 9 exceptions where lenders cannot exercise the due on sale clause. Exception number 8 applies to intervivos Trusts. So long as the Settlor of the irrevocable Trust (who is also the borrower on the original mortgage taken out), pursuant to the terms of the Trust, has the right of use, occupancy and possession of the real estate held in Trust and is the current income beneficiary, Section (d)(8) should protect against the due on sale clause as this is federal law. Consequently, you should not have to reserve a life estate on the deed to protect against the due on sale clause. The downside to reserving a life estate on the deed is that if the home is subsequently sold, the portion of the sale attributable to the life estate interest gets paid to the life tenant and is then back on the table as a countable asset for MassHealth eligibility purposes. You can always cite this federal statute to a loan officer as many will not be familiar with this law. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a master’s degree in taxation. REAL ESTATE TRANSACTIONS BUYER1 Daniels, Christopher S Kreutzer, Deborah A Liang, Qinghua Malla, Purna Tran, Tanga True-Alcala, Tamsin Skye Waldau, Tobias S White, Michael Yawe, John BUYER2 SELLER1 Liang, Junhao Khand, Thamman Dhoj Yu, Junchang Simonelli Carol M Est Lein, Luis Waldau, Morgan E Margalit, Tal Cahill, Jeffrey Recio, Caroline Campbell, Briana J Werlan Marjorie E Est Giardino, Ana Maria James E. “Babe” Murphy, Sr. A longtime resident of Wakefield and formerly of Melrose, passed away peacefully at home on Thursday, September 24, 2026, just two weeks shy of his 95th birthday. Jim was born in Boston on October 7, 1931, one of three children of the late James and Anna T. (Shea) Murphy. He was raised and educated in Malden and attended Cheverus School before serving his country in the United States Army during the Korean War. Following his honorable discharge, Jim married his beloved wife, Arlene Jay, on June 16, 1962, at St. Mary’s Church in Melrose. Together, they settled in Melrose, where they raised their family of five children. Jim went on to work as a Postal Clerk for the United States Postal Service in Boston’s Back Bay, a position he held for 35 years. A proud Irishman and lifelong sports fan, Jim had a special place in his heart for the Notre Dame Fighting Irish and the New York Yankees. His Catholic faith was an important part of his life, and he was a longtime parishioner of St. Mary’s Church in Melrose, and in more recent years St. Joseph’s Church in Wakefield. Jim was also a longtime member of the Melrose Knights of Columbus, and the Melrose Elks Club. He cherished the opportunity to return to his family’s roots in Ireland, but there was nowhere Jim was happier than at home, surrounded by his family. He also enjoyed listening to his favorite Irish music and never lost his quick wit or wonderful sense of humor. His outgoing personality and easygoing nature made him a welcome presence wherever he went. Above all, Jim found his greatest happiness in his family. He was a devoted husband, father, and grandfather, who took great pride in the family he and Arlene built together. He will be lovingly remembered for his unwavering faith, his Irish heritage, and his deep love of family that brought him happiness throughout his life. The family would like to extend their heartfelt thanks to Jim’s caretaker, Nora, for her compassionate care and caring presence during his final days. Jim was the beloved husband of the late Arlene J. (Jay) Murphy with whom he shared 41 years of marriage. Devoted father of Mark Murphy of Salem, Colleen Murphy and her husband Eric Taitano of Melrose, Kerry Murphy and her husband James D. Schena, Jr. of Stoneham, Jerry Murphy of Mansfield, and the late James E. OBITS | SEE PAGE 13 NOTICE OF ABANDONED VEHICLE To the owner of 2019 KIA Sportage abandoned at 1114 Eastern Avenue, Malden, MA 02148. Please contact Route 99 Auto Collision, to claim the automobile. License plate is 4AZS84, VIN #KNDPMCAC4K7617733. My telephone number is 781-322-1606. September 18, 25, 2026 NOTICE OF ABANDONED VEHICLE To the owner of 2025 HONDA CR-V abandoned at 1114 Eastern Avenue, Malden, MA 02148. Please contact Route 99 Auto Collision, to claim the automobile. License plate is 2WKY44, VIN #7FARS6H54SE064846. My telephone number is 781-322-1606. September 18, 25, 2026 Copyrighted material previously published in Banker & Tradesman/The Commercial Record, a weekly trade newspaper. It is reprinted with permission from the publisher, The Warren Group. For a searchable database of real estate transactions and property information visit: www.thewarrengroup.com. SELLER2 Montecalvo, John A ADDRESS Daniels, Christopher S Mccartney 3rd, Thomas A 38 Upland Rd Montecalvo Ft CITY Malden 2 Anderson Way #2 Malden 41 Edmund St 89 Cleveland St 36-38 Hancock St Recio, Brianna Brady, Andrew Katzman, Todd 108 Maple St #4 165 Central Ave 12 Baincroft Rd 131 Pierce St #201 Malden Malden Malden Malden Malden Malden Malden DATE 09.08.26 09.09.26 09.08.26 09.10.26 09.11.26 09.11.26 09.10.26 09.10.26 09.08.26 PRICE 400000 512000 850000 490000 910000 315000 890000 820000 395000
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