Q: If a house title is in a trust fund, can the family continue to pay the mortgage without transferring the deed?

A: Under California law, if a house title is held in a trust, the trust itself is considered the legal owner of the property. The trustee, who is responsible for managing the trust assets, has the authority to make decisions regarding the property, including paying the mortgage.

In this situation, the family can continue to pay the mortgage without transferring the deed, as long as they are acting in accordance with the terms of the trust and the trustee's instructions. The trustee can use the funds provided by the family to make the mortgage payments on behalf of the trust.

However, it is essential to note that the specific terms of the trust agreement will dictate how the property should be managed and who has the authority to make decisions regarding the property. It is advisable for the family to work closely with the trustee and consult the trust agreement to ensure they are acting in compliance with the trust's terms and California law.

In some cases, the trust agreement may include provisions for the beneficiaries to use and enjoy the property, which could include living in the house and making mortgage payments. As long as these actions align with the trust's purpose and the trustee's management of the trust assets, the family can continue to pay the mortgage without transferring the deed.

A: The issue has two different components: 1.Trust 2.Mortgage

1. Trust: When the title of a property is in trust, the trustee make decisions about the management of the title according to trust words. Even though, There are ways to challenge trustee or trust itself, usually beneficiaries have no control over trust properties.

2. Mortgage: mortgage is a contract that you have with the lender. Regardless if it is secure or insecure, it is a contract between the lender and borrower separate from the status of the title. However, if the property is transferred, the transferee can assume the mortgage. (Which means accept to pay the mortgage. The original borrower is still liable in case of default of payments, unless all lender, original borrower and the transferee have a written agreement to release the original borrower).

Therefore, if the trust has assumed the mortgage, the borrower does not have to make payments unless trust does not have sufficient funds and the borrower is not released from the mortgage. If the borrower is making the mortgage payments long enough, under laws of equity (which is all about fairness), borrower may have rights to partial or complete title. This right is not automatic and the claimer needs to bring lawsuit against trust to get the title

Please let me know if you need further assistance.