Discretionary Trust from a Will – Trustee Investment

kms123

Thank you for the info re: HMRC - that is good to know. I did click on the link for the Bath BS, but unfortunately they are not offering trust accounts at the moment. It does give the opportunity to leave your contact details in case it becomes available again. Many thanks.

xylophone

You mentioned above that loans can be made on an interest free basis, where there appears to be the requirement for the loan agreement to allow for the Trustees to recall the loan at any time, and for it to be a secured loan.

There is no requirement for the loan to be interest free but if interest were paid, the the Trust would have income which would be taxable on the Trust - the idea of the loan is to avoid this?

The Trustees could set it up to be repayable on demand ( and remember Trustees' decisions must be unanimous) or when a certain event occurred , for example when the "debtor" reached a certain age or sold his house or died etc etc

There is no absolute need for the loan to be secured ( and in the case I cited, it wasn't) - the main reason for the loan was so that she could make substantial gifts to her children in the hope of PETS (which worked).

She did repay the loan to the Trust when she sold her family home and went to live elsewhere - as explained, the money was then lent again to another beneficiary ( after consultation with the solicitor Trustee) on an interest free and unsecured basis - the likelihood is that the loan will be set against the IHT liability of this "debtor" but not necessarily - he might choose to repay.

I don't have any HMRC references but the arrangements above were reported to HMRC so that they could advise that there was no need to submit the annual return.

You can consult your own professional adviser before entering into any arrangements.

xylophone

any other banks that offer trust accounts.

Had you tried Metro bank?

Had you tried NS&I?