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Borrowing for a mortgage from a child's trust

My son has a trust fund from a medical law suit. We are looking into buying a house. Before applying for a loan and paying them interest I was wondering if it was legal or even possible to borrow from my son instead of the bank and pay him the interest instead. My son is 13 and doesn't have access to the money yet. His dad and I are his beneficiaries.

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I wouldn't think you should even have a right to ask him. He's too young to really make any financial decisions, and you shouldn't take advantage of that. Even if you have good intentions, and I'm not saying you don't, I know personally how out of whack good intentions get sometimes. Put your son first here. As far as the legal ramifications go, I have no clue. But that's my two cense :)

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Oops cents lol
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FunnyLittleFrog

Why is it better to borrow from him? That's his money. There's a reason you don't have access to it, clearly.

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Again with being nasty. Jeez, what is wrong with you!
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Bad idea!! Sorry, I know it seems so sensible. Please, talk to your family lawyer.

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He'll never get it back! Something else really important will come along that you will spend the money for! Don't do it! Go through a bank just like everybody else does.

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Read the terms of the trust first of all. My guess is that you are restricted to using the money only for his benefit. Your interest in buying a house would not be classified as in his interest unless you put the house in his name and it is his house, but even then it might be challenged legally later on. Don't use that money for your purposes.

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I hope it's not legal.

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