All Topics / The Treasure Chest / Are beneficiaries liable for debt in trust?

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  • Profile photo of BuckRogersBuckRogers
    Participant
    @buckrogers
    Join Date: 2003
    Post Count: 5
    April 30, 2003 - 11:51 pm

    Hi,

    Just a quick question you may be able to help me with:

    When I apply for a loan through a family trust and I am the director of the trust and have 4 beneficiaries (wife, Mum, Dad, and I)- are the other beneficiaries responsible for any of the debt I take on? I am assuming that I am the only one who is responsible for the debt of the trust -is this correct?

    Would you please reply back ASAP with an answer as I am going to post some loan documentation off today.

    Profile photo of MathewMathew
    Participant
    @matymathew
    Join Date: 2003
    Post Count: 41
    May 1, 2003 - 12:42 am

    I had a read through the document that Michael posted and one section says that beneficiaries and the appointer are protected providing they do not sign a personal guarantee.

    In that situation only the assets of the trust could be liable. It might be worth taking some time to read the document as it is very helpful.

    Cheers,

    Matt.

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