Assets held in trusts

[Jcode]

Hi All,

On an application for a loan, can an applicant add assets held in a trust if the applicant is a beneficiary of the trust? I've heard from banks will turn down a loan if the applicant has more liabilities than she/he has assets, hence the reason why i ask this question. Thanks in advance.


Regards,

John A

 

[Terry_w]

No.

The assets of a discretionary trust are not the property of a beneficary. A beneficiary is a mere discretionary object to be considered by the trustee. If it were otherwise it wouldn't be a discretionary trust and there would be no asset protection.