It is not uncommon for trust beneficiaries to request loans from trusts rather than outright distributions. Under what circumstances can or should a trustee consider issuing loans? Once a loan is made it changes the relationship between the trustee and beneficiary to that of a creditor and a debtor- what conflicts might this create? What happens if a beneficiary is unable or unwilling to repay the loan? This presentation will explore the circumstances under which loans are requested, how the trustee might approach the issuance of the loan and how to handle the possible default of a loan by a beneficiary.