Loan paid back by trust

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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Topic Author
hoops777
Posts: 2634
Joined: Sun Apr 10, 2011 12:23 pm

Loan paid back by trust

Post by hoops777 » Wed Sep 11, 2019 11:44 am

Can an individual make a loan to a person with a living trust with the stipulation that the loan will be paid back by the trust when the owner passes,most likely within 6 months or less?
K.I.S.S........so easy to say so difficult to do.

Gill
Posts: 5579
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Loan paid back by trust

Post by Gill » Wed Sep 11, 2019 11:49 am

hoops777 wrote:
Wed Sep 11, 2019 11:44 am
Can an individual make a loan to a person with a living trust with the stipulation that the loan will be paid back by the trust when the owner passes,most likely within 6 months or less?
Sure. Are you making the loan to the trust or the individual? Regardless, the individual and the trust assets would be subject to the claims of creditors.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

Topic Author
hoops777
Posts: 2634
Joined: Sun Apr 10, 2011 12:23 pm

Re: Loan paid back by trust

Post by hoops777 » Wed Sep 11, 2019 12:29 pm

The loan could be made to the individual or the trust whichever is best.It would be made by a wealthy friend.Would we need an attorney?
K.I.S.S........so easy to say so difficult to do.

Gill
Posts: 5579
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Loan paid back by trust

Post by Gill » Wed Sep 11, 2019 3:06 pm

hoops777 wrote:
Wed Sep 11, 2019 12:29 pm
The loan could be made to the individual or the trust whichever is best.It would be made by a wealthy friend.Would we need an attorney?
Why don't you have the obligors on the note be both the individual and the trust. You shouldn't need an attorney if it is an unsecured note on a standard form.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

Topic Author
hoops777
Posts: 2634
Joined: Sun Apr 10, 2011 12:23 pm

Re: Loan paid back by trust

Post by hoops777 » Wed Sep 11, 2019 6:48 pm

Thanks.
K.I.S.S........so easy to say so difficult to do.

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