This is a special needs trust.
The terms of the Trust control how the money may be used, and you have a special duty (you are a "fiduciary") to observe the terms of the Trust document. Your discretion is likely very limited. And if the loan is to someone other than the beneficiary, and is not for the benefit of the beneficiary, it is very likely improper. Would you like a PG County referral? You are very much at risk if the loan is improperly made.
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I would proceed with extreme caution. I would have a lawyer review all the facts of the situation to determine if this makes sense or not. Very likely, it would not be appropriate for you to lend the money.
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Your first obligation is to the trust -- not to the beneficiaries. In most cases, trust documents are clear on prohibiting loans except in exigent circumstances and even then, only to the beneficiary. To make a loan to a family member of the beneficiary would likely be highly improper.
DISCLAIMER: Brandy A. Peeples is licensed to practice law in the State of Maryland. This answer is being provided for informational purposes only and the laws of your jurisdiction may differ. This answer based on general legal principles and is not intended for the purpose of providing specific legal advice or opinions. Under no circumstances does this answer constitute the establishment of an attorney-client relationship. For legal advice relating to your specific situation, I strongly urge you to consult with an attorney in your area. NO COMMUNICATIONS WITH ME ARE TO BE CONSTRUED AS ARISING FROM AN ATTORNEY-CLIENT RELATIONSHIP AND NO ATTORNEY-CLIENT RELATIONSHIP WILL BE ESTABLISHED WITH ME UNLESS I HAVE EXPRESSLY AGREED TO UNDERTAKE YOUR REPRESENTATION, WHICH INCLUDES THE EXECUTION OF A WRITTEN AGREEMENT OF RETAINER.
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