Can You Get a HELOC on Trust Property? Yes — Here's How

Quick Answer: Yes, you can get a HELOC when your home is in a living trust. Some lenders work directly with trusts. Others require temporary removal. Here's how to navigate both paths.

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The Short Version

Putting your home in a trust was smart estate planning. Now you need a HELOC — and you're wondering if that trust complicates things.

Good news: it doesn't have to. Many lenders work with trust properties every day. You just need to know which questions to ask.

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Why Trusts Make Lenders Nervous

When you apply for a HELOC, the lender is securing the loan against your home. If your property is in a trust, they need to verify one key thing:

Does the trust have authority to encumber (borrow against) the property?

This isn't them being difficult. It's them doing their job. A properly drafted trust gives the trustee explicit authority to take out loans. But lenders need to see it in writing.

That means reviewing:

• The trust document itself
• Any amendments
• Certificate of trust (a summary document)
• Verification that the trust is still active

For some lenders, this review takes extra time and legal fees. So they take shortcuts: they ask you to remove the property from the trust entirely.

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Revocable vs. Irrevocable: Why It Matters

Not all trusts are treated equally.

Revocable Living Trusts (Most Common)

If you have a revocable living trust — the type most families use for estate planning — you're in good shape. Here's why:

• You control the trust (you're usually the trustee)
• You can modify it anytime
• The IRS treats it as "you" for tax purposes
• Lenders view this as essentially lending to you directly

Most lenders who work with trusts have no issue with revocable trusts.

Irrevocable Trusts

These are trickier. With an irrevocable trust:

• You've given up control
• The trustee may need beneficiary consent
• More legal review required
• Fewer lenders will work with them

If your property is in an irrevocable trust, expect a longer process and fewer lender options.

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Two Paths to Your HELOC

Path 1: Lenders Who Work Directly With Trusts

The easier route — if you find the right lender.

How it works:

1. Apply for HELOC as trustee
2. Provide trust documents (or certificate of trust)
3. Lender's legal team reviews
4. Trustee signs loan documents
5. Property stays in trust throughout

Pros:

• No disruption to estate plan
• Property never leaves trust protection
• Faster if lender is trust-friendly

Cons:

• Not all lenders offer this
• May involve $100-$300 legal review fee
• Can add 1-2 weeks to timeline

Who offers this: Larger banks, credit unions, and lenders who specifically mention "trust lending" often handle this smoothly. HonestCasa works directly with trust properties.

Path 2: Temporary Removal From Trust

Some lenders won't work with trusts at all. Their solution: remove the property, get the HELOC, then re-transfer.

How it works:

1. Deed property from trust to yourself individually
2. Apply for HELOC as individual owner
3. Close the loan
4. Deed property back into trust

Pros:

• Works with any lender
• Simpler loan documents

Cons:

• Extra deed filings (~$50-$100 each)
• Small gap in estate protection
• Risk of forgetting to re-transfer
• In some states, may trigger reassessment (rare but possible)

Important: If you go this route, re-transfer the property back into the trust immediately after closing. Don't wait. Put it on your calendar. Do it within days.

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Documents You'll Need

Regardless of which path, gather these:

Trust Documents:

• Complete trust document OR
• Certificate of trust (shorter summary lenders often accept)
• All amendments to the trust
• Trustee identification (usually your ID)

Standard HELOC Documents:

• Income verification
• Property insurance
• Government ID
• Recent mortgage statement (if applicable)

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Who Signs the Loan Documents?

This confuses people. Here's how it works:

If property stays in trust: The trustee signs on behalf of the trust. You'll sign as "John Smith, Trustee of the Smith Family Trust dated January 1, 2020" rather than just "John Smith."

If multiple trustees: All trustees typically need to sign. This is common with married couples who are co-trustees.

If property is temporarily removed: You sign as the individual owner. Simple.

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Timeline Expectations

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The HonestCasa Approach

We work directly with trust properties — no removal required for revocable living trusts.

Our process:

1. Apply online (indicate property is in trust)
2. Upload certificate of trust
3. We review with our title team
4. You sign as trustee
5. Property stays protected

No extra legal fees. No deed transfers. No gaps in your estate plan.

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Common Questions

Do I need to notify my estate attorney? Not required, but it's not a bad idea. They can confirm your trust allows encumbering the property (it almost certainly does).

Can I add the HELOC to my trust later? You don't need to. The trust owns the property. The HELOC is a lien against that property. They coexist automatically.

What if my spouse/co-trustee has passed away? You'll need documentation (death certificate, trust terms showing successor trustee). Lenders handle this regularly, but expect additional documentation.

Will this affect my property tax basis? Temporary removal and re-transfer generally doesn't trigger reassessment in most states — but confirm with a local professional, especially in California (Prop 13 concerns).

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Your Next Step

Own a home in a trust? Don't let estate planning complexity slow down your access to equity.

[Check Your Rate in 60 Seconds →]

HonestCasa works directly with trust properties. See your personalized rate without leaving your trust protection behind.

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Last updated: February 2026