Question about a family trust
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.