The following is my answer to a Quora question: “My parents set up a trust fund for my
children. Can I borrow against the money in the fund?”
They set up the trust fund with your children as the
beneficiaries, not you. The trust fund
is a distinct legal entity, and unless you are one of the trustees, you have no
legal relationship with the fund. Even
as a trustee, your fiduciary duty responsibility precludes you being able to
borrow from the trust, or against it, using it as collateral. There is no legal way that you can borrow from
that trust.
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