Depends on who you appoint as trustees as they have ultimate control but most peopel appoint the benificariesof the trust if they are the adult children. Do not do anything with trusts unless you get suitable advice first
HI@@MarkGauder - No provided all trustees agree there are no constraints to selling a propery other than the tax implcations but you will need to get advice on that as its quite complex
In the case of bankruptcy, if all the money is sunk into a business and the business fails, and there are no assets, there’ll be nothing left to recall into the trust?
The loan is against the personal assets and Estate of the beneficiary - If that person dies with no assets then yes the loan cannot be recovered. ( No different to the situation if the assets are passed directly to the person. However, in a normal Will when the assets are passed directly to a beneficiary they would be subject to bankruptcy but a loan from the trust would not be. This is complex work and advice should be taken so call or email us if you require help
@@Inheritancetaxadvice Thanks for your response.Like anything, there are always variables. The beneficiaries situation has to meet certain criteria for the loan plan to work. I appreciate it is complex, and each individual’s situation needs to be assessed to see if it works to suit everyone.
In normal circumstances, a loan to a beneficiary or any other would need to be secured with a legal charge on certain assets, such as property. That is to protect the Trustees and in turn the beneficiaries. The trustees have a duty of care and need to ensure that any loan from the Trust is sufficiently protected to avoid action against trustees for not taking care of the beneficiaries assets.
