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Asked in MA May 26, 2022 ,  0 answers Visitors: 4

irrevocable trusts

Can a trustee of a home in an irrevocable trust obtain a home equity loan against this property

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2 Answers

Anonymous
Reply

Posted on / Jul. 01, 2008 18:27:00

Re: irrevocable trusts

The answer is "it depends." Does the trust explicitly give the trustee a right to mortgage the property? And if the trustee gets the loan, will the proceeds be used in a manner which is in the best interest of the beneficiaries?

The other question -- even if the trust allows the mortgage, can the trustee find a bank willing to make the loan? This is easier said than done -- many lenders don't like dealing with irrevocable trusts.

Please feel free to contact me if I can be of assistance.

Anonymous
Reply

Posted on / Jul. 01, 2008 18:27:00

Re: irrevocable trusts

The answer is "it depends." Does the trust explicitly give the trustee a right to mortgage the property? And if the trustee gets the loan, will the proceeds be used in a manner which is in the best interest of the beneficiaries?

The other question -- even if the trust allows the mortgage, can the trustee find a bank willing to make the loan? This is easier said than done -- many lenders don't like dealing with irrevocable trusts.

Please feel free to contact me if I can be of assistance.

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