Can a living trust apply for a credit card?
Can a living trust apply for a credit card?
One of the most common questions I hear is, "Can a living trust apply for a credit card?" In order to understand why this question is asked so often, it is necessary to understand the difference between a revocable trust and an irrevocable trust.
A living trust is a legal document that offers a degree of protection in case you become incapacitated or die without a will. It can be an important thing to have, but it's not the same as, say, signing up for a line of credit at the bank.
So, can you apply for a credit card with a living trust? The short answer is no. A credit card requires that your identity and credit history be verified by the issuing company. That doesn't mean you can't use your living trust to access some lines of credit—it just means that applying for a line of credit isn't the same system as applying for a credit card (and even if it were, you'd still need to go through the process of verifying your identity).
There are other reasons why having a living trust has little to do with getting a line of credit at the bank. For example:
- Living trusts can't be used for property ownership or tax purposes
- A trust is not an asset in itself; it only represents an agreement between people and assets
Living trusts are a great way to avoid probate, but they aren't the right choice for everyone. If you have a lot of credit card debt, you might be better off with a Revocable Living Trust.
If you have any questions or in need an Estate Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.
