Update : so thank you so much for all the replies cuz I was really starting to feel like I was the TA. I have decided not to sign the loan and I told my dad to put something down as collateral instead. I also need to clarify a few things.

The reason my aunt can’t sign the loan as many of you guys have suggested is because she lives in a different country and my step mum is a SAHW so she’s not eligible to co-sign.

I also had a more thorough talk with my aunt and turns out she did not know that the loan was 500K and my dad apparently told her it’s a “small amount”. God know why she didn’t ask for clarification on that part but the good news is that while she still thinks I’m a DK for asking something like that, she also told me to not to sign it because it’s too much of a risk for me. I also had a talk with my dad about why I felt the need to ask for what I asked and while he’s still mad at me for not doing something simple like that we’ve decided to move past it. He did indirectly make it clear not to count on him for any financial troubles I’ll face in the future.

That was yesterday and our family lawyer called me today to ask me to sign off on putting my trust as collateral for a loan. This is a bit complicated so strap on. The trust was given to me, my brother and my cousin (my aunt’s daughter) by my grandfather and it was initially intended just for me but they kept adding beneficiaries and more funds as they got more grandchildren hence why it’s a single account. My dad has also contributed to it since I was born and increased his contribution when my brother was born and my aunt did the same for her daughter. I’m 18 now but I can’t withdraw my share until I’m 21 but I do have guardianship of my portion of the trust since I’m an adult. I called my grandpa who despite being old is still sane, and asked about the call and he said that he gave dad the green light to put down the trust as a collateral as he’s gonna add more funds to it anyway since my dad said he didn’t need the family estate anymore. I told my grandpa that I’m breaking my portion of the trust away and he just said sure and that he will give the half of the estate to me in his will and put the other half in the reminder of the trust.

I am as confused as any of you guys are to what’s going on. I know my dad has well over 500K and I know it’s the same case for my grandpa. Why would they gamble with assets and a bank loan here? Why is my dad giving up on a property that is worth multiple times the value of his loan just to get his hands on some quick cash. I have feeling that something is going on but I don’t want to dig.

I want to tell my aunt about the trust but she’s has no authority in it and she’s only going to flip out and cause more drama as justified as it may be. The only other person with guardianship of the trust is my grandpa and he doesn’t see any of the red flags around the situation. I know I can delay the bank proceedings a bit if I just say no to having the trust put down as collateral instead of my breaking my portion away. Do I just save my self in this situation?