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Personal Loan 10 Years to Pay off with Trust

 
 
Reply Mon 10 Dec, 2012 04:19 pm
Would it be reasonable to ask to borrow $25k to be paid off at $100k in 10 years with money from a trust? Or sooner. Of course all risks would have to be addressed to ensure payment. Seems like a good deal for both parties or am I way off base?
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Type: Question • Score: 7 • Views: 1,419 • Replies: 6
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PUNKEY
 
  1  
Reply Mon 10 Dec, 2012 04:24 pm
Borrow directly from the trust account. It will lower the amount in your trust, but if you show a valid need, the executor can OK an early withdrawal.
ppyoung37
 
  1  
Reply Mon 10 Dec, 2012 05:29 pm
@PUNKEY,
We tried. The trustee is difficult and has a personal history with the beneficiary. We won't need the trust money in ten years. Is this sort of loan something that sounds reasonable? The trust is more than $500k and we don't care if we get any of it in ten years, we just need the $25k now for move our business.
roger
 
  1  
Reply Mon 10 Dec, 2012 05:33 pm
@ppyoung37,
I'm confused. That is, whose trust is it? Who is the Trustor and who is the beneficiary?

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engineer
 
  1  
Reply Mon 10 Dec, 2012 09:02 pm
@ppyoung37,
That's around 15% interest so no it doesn't sound like a good deal especially if the trust is backing the loan. On a well collaterallized loan you should be able to get a much better rate than that. A ten year home loan would be 3-4% and your trust might be more secure than that. I suggest you find some other source for a loan and save the trust fund to pay it back yourself.
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felcanadaloan
 
  0  
Reply Mon 2 Mar, 2015 12:51 am
@ppyoung37,
Okay ... i agree to the point that you should only borrow straightaway from the trust.
Lordyaswas
 
  1  
Reply Mon 2 Mar, 2015 12:57 am
@felcanadaloan,
This was over two years ago.

pp has probably borrowed the money at the extortionate rate, borrowed some more to go to Jamaickee for some sun, bought himself a ninety inch plasma, been to Las Vegas and drank Elvis under the table, and is now waiting desperately for the next seven or eight years to fly by in order to get the remaining trust money of $15.
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