Loan Trust (Bare or Discretionary)

A trust which your client, the settlor, creates by lending money to their trustees to invest rather than giving it away. The loan is repayable to your client on demand, giving them flexibility for the future and can be repaid to them on an occasional basis or by regular repayments.

The Discretionary version allows the trustees to amend the beneficiaries, whereas the Bare version names the beneficiaries at outset and these cannot be changed. 

Read about Loan Trusts

Loan Trust Bare brochure 
Loan Trust Discretionary brochure 

Informer article - How a loan trust may help IHT planning

Watch this Techcellence video on Loan Trusts 

Visit the Trustability Hub for useful support materials about trusts.

Visit the Trust Form Finder to access all the forms you will need to set up a trust. 

Please Note