Discretionary Family Trust Loans

Discussion in 'Wills & Estate Planning' started by Ankush, 18th May, 2023.

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  1. Ankush

    Ankush New Member

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    12th Aug, 2019
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    Doncaster
    Hi all, I need some understanding on a situation.

    The sole trustee of family trust has passed away. Under trust deed his son has been appointed as a new trustee with the power to either continue the trust and or wind it up and distribute the proceeds as he sees fit. The son is also the executor for the estate. The trust has a loan owed to bank and another loan owed to trust by the company which son will inherit through buy/sell agreement.

    Now the question is what are options for both the loans and what decisions does the son need to make?

    TIA
     
    Ankush, 18th May, 2023
    #1
  2. Trainee

    Trainee Well-Known Member

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    Whats a buy/sell agreement?
     
    Trainee, 18th May, 2023
    #2
  3. Ankush

    Ankush New Member

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    12th Aug, 2019
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    Doncaster
    This agreement is for the business where the son will receive the insurance proceeds and pay the proceeds to the estate to acquire his father's shares in order to become the sole director of the company.
     
    Ankush, 18th May, 2023
    #3
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Complex legal advice
     
    Terry_w, 18th May, 2023
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    Paul@PAS likes this.