MikkoParticipant@mikkoJoin Date: 2013Post Count: 26
I’m about to set up 2 managed funds accounts for my daughters. If I set them up in a trust structure, can the funds in there still be borrowed against for future investment properties?
Mikko.Corey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010
Managed funds as in shares?
Leave this one to the legal eagles, but assuming you sold the shares and then made the purchases in the trust there wouldn’t be an issue as long as it meets the usual lending criteria. Otherwise you could potential lend the funds from the trust to a person/entity outside of the trust – speak with a lawyer/accountant on that situation.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,173
Legally speaking only if the trust terms allow it, otherwise a breach of trust.
Do you want the trustee to obtain a margin loan against the shares? (see if trustee is allowed to do this first) and then consider whether this is a good idea in terms of risk. If not talking about margin loans then perhaps you asking if the trustee can lend trust money? Again depends on the powers in the deed.
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