Can An Irrevocable Trust Get A Loan?

Loans to Irrevocable Trusts

Loans to Irrevocable Trusts

Lending options for irrevocable trusts tend to be limited.  Because  recourse against the grantor / settlor is often times not possible most conventional lenders are not willing or able to provide financing on real estate held in the irrevocable trust. To compound the issue, once the Family Trust becomes Irrevocable, the abilities of the Trustee tend to be restricted. The majority of mortgage lenders would not be willing to lend on the real estate until it had been distributed and removed from the trust.

Fortunately there are some options available if you are a trustee in need of funds for a trust. There are a handful of private money lenders who are willing to provide short term financing to real estate held in Irrevocable Trusts.  Typically these loans are intended to provide a cash infusion so that an equal distribution of the Irrevocable Trust can be made.  Other times the loans are provided to cover the expenses of the trust until the distribution can be made.

If you are in need of a loan for an Irrevocable Trust, visit for more information.

What Is an Irrevocable Trust?

An irrevocable trust is a type of trust where its terms can no longer be changed. Most trusts start as revocable, but when a life event such as death occurs, they transition to an Irrevocable Trust. At that point, the trust for the most part can not amended, changed or terminated without the permission of the grantor’s named beneficiary or beneficiaries; and even then limitation may exist. The grantor or settlor at that point has effectively transferred all ownership of assets into the trust and removes all of their rights of ownership to the assets and the trust.

What Is an Irrevocable Trust loan?

An irrevocable trust loan is a loan or mortgage typically secured by real estate. Unlike a conventional mortgage, the irrevocable trust loan is made to the trust as opposed to an individual. Since a trust unlike a person, often does not generate income or have the capability of showing credit worthiness, most lenders are not equipped to provide to trusts.


  1. With property tax transfer or parent to child transfer, or as lawyers call it, “parent to child exclusion” — where else can you transfer parents property taxes to your own inheritance… Except in California where it’s common to use trust loans to resolve inherited property conflicts between siblings, with CA Proposition 58 – enabling co-beneficiaries to sell shares of their inherited property, what my realtor refers to as a buyout of sibling property shares… while avoiding property tax reassessment at the same time thanks to Prop 13. Only in California is it possible to buy out a sibling’s share of an inherited house, as a transfer of property between siblings or “sibling to sibling property transfer” – by lending money to an irrevocable trust – as long as we have a trust lender we’re comfortable with. That also knows Proposition 58 front and back. It helps to study up on all this if you’re inheriting property from parents in CA, it’s a must to go to an informative site like or perhaps an info resource site like to get all the facts straight and know how to choose the right lender when the time comes.


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