I am one of the executors of my father's estate. He held many illiquid shares, and a good number of those now need cash urgently because of the Covid lockdown.
The companies are raising money under the UK Government's Future Fund convertible loan scheme, and we would like to invest some of the money in the estate into these loans now (all beneficiaries agree).
My question is regarding EIS. Normally investing in this kind of convertible loan (not EIS eligible) would also prevent any future investments into these companies being EIS eligible. However, I'm not clear if that would affect the beneficiaries. If we invest now (before distribution) it is money from the estate. Once distributed EIS benefits don't pass on to beneficiaries anyway, so presumably the beneficiaries could still invest in the same companies and get EIS in future?
Sorry it's a complicated question, and I don't know if I explained it well. Would appreciate any views. Thanks
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