Legal Question in Wills and Trusts in California

Re: living trust

As a legal matter, yes, but as a practical matter the security would be pretty dubious since it is only the interest of the borrower that can serve a collateral. If the house has not yet been transfered into the name of the 3 people, then the interest of the borrower is only an expectancy interest that may or may not come into existence. If it is already transfered, the fact that the interest was transferred through a trust is irrelevant. If the house is in the name of the trust, then none of the people have and interest in the house.

Re: living trust

Yes, but only to the value of their 1/3 ownership. This would also make the title separate for, at least, that one person.

The problem that will be faced is that most lending institutions will not provide a loan unless they can receive a lien on the entire property, not just 1/3.

We may be able to assist you, as there are other options available to you that can include a partition and sale action

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Regards,

Scott Linden