This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Loan Trust - Absolute or Discretionary?

Joined:Thu Apr 29, 2021 11:23 pm
Loan Trust - Absolute or Discretionary?

Postby AK1951 » Tue Jun 08, 2021 9:16 pm


I have been advised to set up a loan trust on a discretionary basis and I just wanted to gather my thoughts on why i should not consider an absolute trust instead? I was not really convinced with the explanation and just wanted to know about the disadvantages of an absolute trust apart from children having a right to claim the 'growth' after 18. Even if they do, does that matter as I still have access to the loan and i understand i dont get access to the growth entitlement anyway?

Joined:Wed Aug 06, 2008 3:25 pm

Re: Loan Trust - Absolute or Discretionary?

Postby maths » Wed Jun 16, 2021 5:47 pm

I'm afraid the post is to me a little confusing?

Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”