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Home | Wills & Living Trusts | Living Trusts
Living Trusts FAQs

Can I make a loan from my trust to a beneficiary?

Yes, if your trust documents state explicitly that this is allowed. If it is permitted, you can make the loan, which the beneficiary must pay back with interest. You can allow the beneficiary to repay the loan with money he or she would otherwise have received from the trust.

Similarly, you can make it clear in the trust that the trustee can make payments on behalf of a beneficiary (e.g., a child's college tuition).