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


Asked on 7/01/08, 4:59 pm

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.

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Answered on 7/01/08, 6:05 pm
Alexandra Golden Golden Law Center

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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Answered on 7/01/08, 6:27 pm


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