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Trusts and Loans
I am in the process of setting up an unregistered trust, however due to the fact it is not obligated to fill out tax returns.
If I wanted to, would I be able to take out a loan in the future? As the banks request tax returns, payslips etc. I would have nothing to show.
Unless there is another way?
Thank you
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4 Replies
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Question: Can the Non Registered Trust obtain
a loan?
Answer: No, it is Non Registered & is not part of the
“public” system & cannot obtain its benefits & privileges.
However, the Trustee/s can borrow on behalf of the
Trust, using the property as collateral for the loan.
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Thank you for the answer.
I should explain my situation in a little more depth.
I am 21 and in the process of opening up a trust account. I will receive my productivity of labour (base + commission) via invoice to my business partner/employer which would then go straight into my trust account, therefore I am not obligated to complete a tax return each financial year.
So in the future if i was looking to obtain a loan as the trustee, I would have no tax returns in my name to show the bank during the loan process. Which I would assume they need when taking out a loan.
I do not have any other assets that i would be able to use as collateral.
If i can still obtain a loan, i am wondering how?
If not, what is a way i can work around the process? potentially receive portion of money into public and portion of money into private, just to show i am earning something?
Thank you in advance.
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It depends what you would want a loan for. Sometimes you can get unsecured loans using the asset you are purchasing as collateral.
If you go to the next Q and A tomorrow night then you could your business questions of Mark, who has had lots of experience using his Trust in business.
rsvp for Mark’s next Q & A session, and have your question typed in a word document before the session and as soon as the session starts, copy and paste your well worded question(so he can understand the question without being long winded) into the chat box. Ensure your comment begins with “Q: ” so Mark will know that it is a question, as this is what he is looking for in the chatbox…..https://solutionsempowerment.org/event/general-qa-october-18/
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Yes that was also my plan.
Thank you again.