Will a Bank Allow You to Borrow Against a Trust in Georgia?

Trusts are often seen as estate planning tools for distributing wealth—not accessing it. But what if you need liquidity? Can you borrow against a trust? Will a bank allow it?

The short answer: It depends on the type of trust, the terms inside it, and your role.

Here’s what you need to know about borrowing against a trust in Georgia.

Can You Borrow Against a Trust?

Yes, in some cases, banks and lenders may allow borrowing against trust assets—but several factors determine whether it’s possible:

It depends on:

• The type of trust (revocable vs. irrevocable)
• Whether the trust owns real estate or financial assets
• Your role (Are you the trustee? A beneficiary?)
• The trust’s terms (Does it permit borrowing or encumbrances?)
• The lender’s internal policies

Borrowing Against a Revocable Trust

If you’re the grantor and trustee of a revocable living trust (a common setup for individuals and married couples), you generally retain full control.

In this case:

• You can refinance or take out a loan against property in the trust
• Most Georgia banks recognize revocable trusts and will lend as long as documentation is in order
• You’ll typically need to provide:
  • A certification of trust
  • A copy of relevant sections of the trust
  • Proof that you, as trustee, are authorized to borrow

👉 Learn more about revocable living trusts in Georgia

Borrowing Against an Irrevocable Trust

This is where things get tricky.

In an irrevocable trust:

• The grantor gives up control over the trust assets
• Only the trustee can act on behalf of the trust
• The trust’s terms must explicitly authorize loans or collateralization

Most lenders are very cautious about lending against irrevocable trust assets unless:

• The trust holds valuable, income-producing assets (like real estate)
• The trustee has clear authority to borrow
• The beneficiaries agree (in some cases)

Because irrevocable trusts are often used for asset protection, many are intentionally structured to prevent creditors or lenders from gaining access.

Common Scenarios in Georgia

Real Estate in a Trust

• If your home is held in a revocable trust, you can usually refinance or take out a HELOC
• For investment properties in an irrevocable trust, commercial lenders may require trustee approval and legal review

Investment Accounts

• Banks are less likely to offer a loan secured directly by financial accounts in a trust
• A trustee might, however, use trust income to guarantee or support a personal loan

Private Lending

• In some cases, families use private trust loans (borrowing from one trust to benefit another)
• These require legal and tax guidance to structure correctly

What to Watch Out For

• Title issues: If real estate is improperly titled, lenders may refuse the loan
• Tax consequences: Borrowing may affect income or gift tax planning
• Lender requirements: Some Georgia lenders may still hesitate, even if trust terms permit it

👉 See why having updated estate planning documents matters

Should You Borrow Against a Trust?

It’s possible—but it’s not always simple or advisable. Trusts are built to protect, not leverage. That said, if you need access to liquidity, and the trust structure allows it, there are paths forward—with legal support.

At Hurban Law, LLC, we help Georgia trustees, beneficiaries, and families structure trusts with flexibility—or explore financing options that won’t jeopardize long-term goals.

Contact us today if you’re considering using a trust as part of a borrowing or refinancing strategy.