Legal Question in Wills and Trusts in New York
Can I use my trust fund to apply for a credit card? The trust has its own social security number.
2 Answers from Attorneys
Yes, but you might not get one. If the trust is irrevocable many banks and credit card issuers will not extend credit as if there is a default they might not be able to collect against trust assets. If you have assets in or receive income from the trust, why not simply apply for a card personally. This is a response to an Internet question and the reply is not intended to be legal advice or as creating an attorney-client relationship.
As the previous response points out, the credit card issuer is unlikely to agree to this. Most trusts are well-drafted by attorneys, and in the course of preparing a well-drafted trust they will typically include what is commonly referred to as a "spendthrift" provision. Basically, this provision exists to protect trust beneficiaries from themselves and the trust from their creditors. It operates by severely limiting a beneficiary's ability to borrow against the trust, which is basically what you're asking to do. If counsel for the credit card issuer would even consider this arrangement (which is unlikely) they would almost certainly identify this provision and decline issuing the card to you.
Related Questions & Answers
-
If you are served a subpeona and you dont show, what can happen Asked 6/02/11, 9:28 am in United States New York Probate, Trusts, Wills & Estates