Loan Trust

The FPIL Loan Trust allows UK domiciled individuals to make a loan into a trust, rather than an outright gift.

Issues for consideration

  • The Loan Trust is only available for use with new applications. It cannot be setup on an existing plan.
  • The lender can request the loan to be repaid at any time.
  • Only the outstanding loan amount can be repaid to the lender.
  • There are no restrictions on the amount or frequency of repayments.
  • Taking more than 5% of the cumulative tax deferred allowance as a withdrawal in a plan year could trigger a chargeable event if UK resident.
  • Only the growth is outside of the settlor’s estate for IHT planning.
  • Any loan repayments that have not been spent will remain inside of the estate.

Trust Deed

How it Works Guide

Deed to waive an outstanding loan

Request to trustees for loan repayment

Additional Loan Agreement

Loan Trust Outstanding Loan