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Can I raise finance in the UK using an irrevocable trust as security?
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Alice Sutton
Posted: 02 August 2012 11:53:02(UTC)
#1

Joined: 02/08/2012(UTC)
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I am a named beneficiary on a irrevocable trust in the UK, my parents who are now elderly set up a trust some years ago to avoid paying loads of inheritance tax, the trust comprises mainly of a property plus a few shares etc.I need to raise some funds to help with a move to the Middle East soon, would be very grateful if anyone could help. I have looked at lots of sites but cannot find any info. Many thanks.

Apologises if I have posted this on the incorrect forum I am new to the site
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Nat Gonella
Posted: 03 August 2012 10:58:30(UTC)
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Joined: 12/03/2012(UTC)
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Was thanked: 1 time(s) in 1 post(s)
It is conceivable that the Trustees may have the power to borrow against the Trust's assets. It is also conceivable that they may have the power to make a loan to you, albeit on an arms length basis. Clearly they call the shots and may not wish to proceed in this manner, but you can always ask them to consider it.
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Alice Sutton on 03/08/2012(UTC)
Ian
Posted: 03 August 2012 11:10:09(UTC)
#3

Joined: 09/12/2009(UTC)
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Alice Sutton;15712 wrote:
I am a named beneficiary on a irrevocable trust in the UK, my parents who are now elderly set up a trust some years ago to avoid paying loads of inheritance tax, the trust comprises mainly of a property plus a few shares etc.I need to raise some funds to help with a move to the Middle East soon, would be very grateful if anyone could help. I have looked at lots of sites but cannot find any info. Many thanks.

Apologises if I have posted this on the incorrect forum I am new to the site


It would be necesary to consider the terms of the trust deed but a loan to you by the trustees is probably a possibility. You could assign your interest in the trust to your creditor as security but this is impractical as your creditor would have difficulty in enforcing its interestas the trustees could refuse to transfer the funds.
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Alice Sutton on 03/08/2012(UTC)
Karen Dalton
Posted: 24 January 2013 18:55:00(UTC)
#4

Joined: 24/01/2013(UTC)
Posts: 1
I can understand the situation you are dealing with. I need to go deeply about the irrevocable property. I will update you in the next post about the better options regarding your issue.

Great rates
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