Typically, the balance due on a mortgage for real estate owned by a Living Trust is the liability of the Trust itself.
Beneficiaries in a Trust are not personally liable for any obligations of the Trust in most situations.
Of course, the value or worth of the Trust is diminished by the balance owed on the mortgage, and the beneficiaries of the Trust must understand this fact.
To quickly and affordably create a valid Living Trust without the need for an attorney, see Standard Legal’s Living Trust legal forms software page.