Legal Question in Elder Law in Massachusetts
irrevocable trusts
Can a trustee of a home in an irrevocable trust obtain a home equity loan against this property
2 Answers from Attorneys
Re: irrevocable trusts
It would depend on the langauge of the Trust. Moreover, the Trustee has to use such funds for trust purposes not his or her own purposes.
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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