Is it possible to get financing with a family trust? I’ve encountered this question numerous times, and I understand the importance of finding clarity on this matter. First, it’s essential to acknowledge that most financial institutions are hesitant when it comes to dealing with family trusts. However, it’s important to note that within these institutions, there are individuals who possess the expertise to navigate such arrangements effectively. A family trust can also present challenges, especially when dealing with the wrong lenders. Watch the video below or read the transcript for the highlights.
Video Transcript: Can I get financing with a family trust?
Will I be able to finance properties real estate if I have a family trust?
I’m George Dube. Saving the world from tax one bow tie at a time®.
Unquestionably popping into most financial institutions, the majority of the lenders are not, not, not going to be comfortable with family trust.
That said, each of those institutions will certainly have people that are more than capable of dealing with family trusts.
My own perspective, the family trust actually makes it easier in a variety of cases.
To get financing, there needs to be a certain threshold, no question of assets, lending, et cetera that exists.
But yes, I do think the family trust can both act as an impediment to financing primarily when we’re talking to the wrong people and it can be an advantage or neutral when we are talking to the right people and admittedly have the right situation.
Putting in place a family trust when we’re not in a very good financial situation is not magically going to cure it.
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Resources
For additional resources related to the abiltiyt to get financing with family trusts, or family trusts in general, see:
- Family trusts: Ultimate FAQ for real estate investors
- Paying kids to save taxes: Here’s how in Canada
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Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.
