Trust Loans for Nurses

A trust loan is credit provided to a trust (e.g., discretionary/family, unit, hybrid or corporate trustee company) with the trust’s trustee as borrower. Lenders assess the trust deed, trustees/beneficiaries, serviceability and security, then register a mortgage or charge over assets.

The trustee applies for finance, provides the trust deed and financials, and offers acceptable security (often real property). Directors/individual trustees usually give guarantees. Loan proceeds must be used in line with the deed and lender policy.

Yes. The trustee borrows on behalf of the trust. Lenders will require the deed to permit borrowing and charging assets, and may require personal guarantees from directors/individual trustees.

Yes—major banks, regionals and specialist lenders do. Appetite depends on loan purpose, LVR, cash flow, asset class and trust structure.

Provided it meets serviceability, security and policy requirements, and the deed authorises borrowing and granting security.

No. A trust loan is to the trustee for trust purposes and typically secured (e.g., mortgage). A personal loan is to an individual and usually unsecured.

If a trust lends out money (to a beneficiary/director entity), it should be on documented, commercial terms consistent with the deed and tax law. Seek legal and tax advice.

Often yes, if allowed by the deed and on arm’s-length terms (documented interest, repayments, security where appropriate). Tax and compliance rules apply.

Yes: personal guarantees, cross-collateralisation, cash-flow strain, deed restrictions, tax consequences of loans/distributions, and potential ATO scrutiny if not at arm’s length.

More documentation and legal costs, narrower lender pool, potential higher rates/LVR limits, and ongoing governance obligations. Poorly structured loans can create tax issues.

Commonly: discretionary (family) trusts, unit trusts, hybrid trusts and testamentary trusts (plus variations like corporate trustees). Names and rules vary by jurisdiction.

The trustee holds assets for beneficiaries according to the deed. Beneficiaries don’t own specific assets until appointed/distributed.

In Australia, net income is generally assessed to beneficiaries who are presently entitled. If not, the trustee may be assessed at penalty rates. Get tax advice for your structure.

The ATO regularly reviews trust arrangements, especially non-commercial loans, reimbursements and distributions. Keep arm’s-length terms, clear records and seek advice.

“2-year rule” isn’t a universal Australian trust rule; it may refer to foreign jurisdictions or specific concessions. Always check the rule that applies to your country and trust type.

Often refers to share dividend holding-period rules (e.g., 45-day rule) for franking credits. Trusts must satisfy relevant holding requirements. Obtain tax advice.

Typically a non-Australian (US) concept allowing annual withdrawals up to 5% without adverse estate tax impact. Not an Australian trust law rule—seek local advice.

Depends on serviceability, LVR, security and lender policy. Residential investment LVRs for trusts often top out around 80% (lower for some scenarios); commercial varies.

Broadly similar to the above—driven by cash flow, debt levels, rental shading (if applicable) and security. Pre-assessment gives a tailored limit.

Rates vary by lender, LVR, product and risk. Expect parity with investment/SME rates or a modest premium for complexity. Compare total cost (rate + fees).

Sometimes. Availability depends on lender policy, security quality and purpose. Alternatives include variable splits with redraw.

Make scheduled repayments from trust income (rent/business income) or capital. If beneficiaries or related entities borrowed from the trust, use documented repayment schedules.

Trustees can make distributions or loans per the deed and law. Distributions should be resolved and documented; loans must be on commercial terms.

Only if it represents a valid distribution, reimbursement or loan under the deed, with records kept. Avoid private use of trust funds without documentation.

They can suit asset-protection and succession goals when properly structured. Consider complexity, lender choice, costs and tax before proceeding.

Yes: borrowing personally or via a company, director guarantees with personal ownership, or vendor finance. Each has different tax and risk outcomes.

Administration costs, compliance, limited ability to distribute to minors at low tax rates, banking complexity and potential ATO scrutiny if arrangements aren’t commercial.

Reduced personal control, formal record-keeping, professional fees and constraints from the deed. Benefits must outweigh complexity.

Australia doesn’t have a separate inheritance tax, but trusts can have stamp duty/CGT implications. In other countries, trusts may affect estate taxes—seek local advice.

In Australia, inheritances aren’t directly taxed, but CGT may apply on later disposal and super death benefits can be taxed to non-tax-dependants. Check your jurisdiction.

Usually a UK concept about gifts outside the estate after 7 years. It doesn’t apply to Australian tax in the same way. Get jurisdiction-specific advice.

Ensure the deed permits lending, draft a loan agreement (interest, term, security), minute the decision, and comply with tax/arm’s-length requirements.

Banks can provide trust accounts and lending products. Legal and tax setup should be handled by your solicitor/accountant.

Trusts can make interim distributions or beneficiary loan repayments if permitted, but annual resolutions are still required to confirm entitlements.

Some banks tighten policies due to compliance and AML obligations. Many still support trusts, but requirements are stricter.

Assets that breach the deed/law, personal living expenses, and undocumented loans. Avoid mixing personal and trust funds.

Provide deed, trustee IDs, financials, security details and serviceability evidence. Expect personal guarantees and legal review of the deed.

Centrelink is a welfare agency, not a bank. Some benefits have advance-payment options subject to rules. This is separate from trust lending.

These are US estate-planning concepts and generally don’t apply in Australia. Always confirm rules for your jurisdiction.

There’s no “best” for all. Alternatives include personal ownership, companies, partnerships or combinations. Choose based on asset protection, tax and succession goals.

Personal borrowing limits depend on income, debts and credit. Trust borrowing depends on trust serviceability, security and policy. Pre-assessment provides accurate figures.

Expect market-based investment rates; pricing improves with lower LVR, strong cash flow and quality security. Always compare offers and total cost.