How Loan Trust Set Up Flashcards
1
Q
How setup
A
Settler sets up trust and makes interest free loan repeatable on demand
2
Q
Who trustees?
A
Settlers are trustees
3
Q
Types
A
Absolute trust - fixed beneficiaries
Discretionary trust - flexibility
4
Q
Where invested
A
Life office investment bond
5
Q
Income
A
Income can be taken and makes use of 5% annual allowance and is treated as loan repayments
6
Q
Death of settlor
A
Outstanding loan forms part of estate
7
Q
Growth
A
Growth is outside the estate for IHT purposes
