Dual Trust Distributions

Hi Team,

I have a scenario whereby I receive distributions from a parent discretionary trust into my discretionary trust which distributes to myself and appears on my tax return. This dual layer of distribution seems to have caused some angst with some lenders I have spoken to so far (none big 4).

Has anyone come across this situation in the past or can shed some guidance? Who may accept this form of income? I have multiple years of tax returns and can provide confirmation that they are continuous and ongoing.

Looking forward to the response.

 

What’s the issue with it? Who controls the distribution trust? If not a borrower they won’t take the income into account in most cases

 

Some lenders have flat out said no, others have said would need every director, shareholder and beneficiary to provide financials. Which in most cases will not happen as some people I do not even speak to for example.

Is this something that commercial finance would look at? And once the portfolio has built up I can show more income via the investment properties?

This dual layer arrangement is only temporary it will revert to one layer in the future however, I feel like waiting I will slip further behind in the property market.

 

Thanks for the response, any where you can think of to try? I suspect this would come with a higher IR due to the increased risk

 

If you don’t control the entity they won’t like it.
Low doc might be an option