Legal Question in Wills and Trusts in California

My mother's home is in a family trust and she just passed away. We want to sell the house (it's free and clear), but it is badly in need of repair. Can we borrow against the trust in order to pay for needed repairs, and then pay the loan back from the sale proceeds?


Asked on 5/16/14, 6:01 am

1 Answer from Attorneys
Michele Cusack Pollak & Cusack

In theory, yes, but it might not be easy as lenders don't look fondly at irrevocable trusts, esp with no income. Or, when you say "borrow against the trust," do you mean there are other, liquid assets? If so, the cash (or proceeds from securities) may certainly be used.

The sibling who is the successor Trustee should retain a qualified estate planning/administration lawyer to make sure all fiduciary duties are carried out properly.

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Answered on 5/16/14, 6:28 am


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