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Question about a family trust

Posted by Phil Rees PM | on Mon, 05/09/2011 - 16:20  1227  6 comments | report

Client's father (now deceased) set up a trust in 1978 for charitable purposes . Trust deed permits excess funds to be held in investments "authorised by law for the investment of trust funds". It already holds a few shares in the family company and receives dividends. My question is: can it make a commercial loan to the family company? The family company's business is that of a commercial landlord, owning properties worth in excess of £1,000,000 (fully tenanted). The proposed loan is £20,000.

 

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Charitable?

Galaxian | Mon, 05/09/2011 - 16:53
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yes they are no  

Phil Rees | Mon, 05/09/2011 - 17:01
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Investment

Galaxian | Mon, 05/09/2011 - 17:11
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What kind of trust

Marion Hayes | Mon, 05/09/2011 - 18:24

"Being established as a trust

Galaxian | Mon, 05/09/2011 - 18:35
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It is solely for charitable purposes

Phil Rees | Tue, 06/09/2011 - 12:11
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