Can you borrow money against a trust?

Written by shauna zamarripa
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Can you borrow money against a trust?
(Keith Brofsky/Photodisc/Getty Images)

A trust account is a legal instrument that one person puts in place to hold funds until, upon his death, they go to the named beneficiary. Trusts can also be used as a savings account, as some trusts allow the owner or beneficiary to borrower from them before their maturity.

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Not all trust funds allow a user to borrow from them. Some types of trust funds that do allow a user or beneficiary to borrow money from the account are: discretionary trusts, family trusts, unit trusts, hybrid trusts, property investment trusts, self-managed super fund trusts and service trusts.

Fees for Trust Loans

When taking money out of a trust on a loan basis, the borrower agrees to pay the money back into the trust within an allotted time. All lenders will charge a fee for the loan, as well as added legal fees ranging from £130 to £325, according to the Home Loan Experts website.


Trust loans are normally set up to purchase investment properties or second homes. When applying for a trust loan, a buyer should consult with the attorney who originated the paperwork for the trust in order to discover any ramifications associated with it.

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