Is it legal to take out a mortgage, buy a property that is held in an irrevocable Trust, use the funds for updates and mortgage payments and re-sell the property?

The home is held in my mother’s irrevocable Trust. My 3 siblings and I are beneficiaries. She passed away nearly 1 year ago. The home needs some updates in order to sell for a good price. If we borrowed the money and purchased the home, would the funds then be available to us, as beneficiaries, to use as

needed?

Asked on March 17, 2018 under Estate Planning, Pennsylvania

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

I am so sorry for your loss.  I am confused what you mean by mortgaging the property held in trust.  You say that you are the beneficiaries of the Trust so why were the Trust assets not distributed after her death?  If it is still in the Trust the Trstee must take out the mortgage on the property.  If you all want to take out a mortgage it must be re-titles in your names. Please seek legal help with Trust in hand.  Good luck.


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