Absolutely. If you expect that your loved one intends to use their inheritance to pay down their mortgage, you should still consider a testamentary trust Will. We can preserve the asset protection benefits of the trust if a simple loan agreement is prepared between the trust as lender and the beneficiary as borrower.
Once the loan is prepared, your loved one can then loan the required amount from the trust to pay down their mortgage. They will have the power to determine the terms of the loan, which can state it’s repayable at call, which means your loved one wouldn’t need to worry about regular repayments and interest. If their relationship later breaks down, or if they are sued by somebody, the inheritance will still be protected as the loan is considered an asset of the trust, and not your loved one’s money. Even if your loved one was forced to sell their house, the trust usually needs to be repaid in priority to a disgruntled ex or creditor.