trustee borrowing on house in trust

[TrustUser]

What is the name of your state (only U.S. law)? ca

i am hearing different stories from banks.

if anyone has done this, i am interested to find out

1) whose income is generally used to verify ? trustee or beneficiary ?

2) i assume the trustee signs for the loan ?

3) anything else that you might find pertinent ?

 

[LdiJ]

What is the name of your state (only U.S. law)? ca

i am hearing different stories from banks.

if anyone has done this, i am interested to find out

1) whose income is generally used to verify ? trustee or beneficiary ?

2) i assume the trustee signs for the loan ?

3) anything else that you might find pertinent ?

It might very well be a serious breech of fiduciary duty to encumber an asset in the trust. Much more information would be required in order to answer your questions.

 

[tranquility]

The trust is the borrower. Usually, there is a requirement to have substantial assets and/or income in the trust to assure payback. Such loans are usually temporary and designed to give some liquidity to the trustee to manage the assets while sale of some of them take place. Neither the trustee nor the beneficiaries income are usually considered. (Unless they make a personal guarantee--which would be stupid.)

But, as LdiJ said, there are a lot of facts missing to know if this is a case for such action or not.