Definition of 'Trust Fund'

This is probably a very simple question, however I am looking at an old Trust deed (with very little punctuation) in which the ‘Trust Fund’ is defined as "any monies lent by the Settlor to the Trustees and all monies investments and property at any time added by way of further loan settlement accumulation of income capital accretion or otherwise and all monies investments and property from time to time representing the same or any parts thereof’.

My colleague has asked whether the wording reads such that assets in the Trust fund
a) will always be on a ‘loan basis’ or
b) whether trust assets can be a mix of loaned assets and gifted assets?

My initial interpretation is (b) - they can be a mix of assets received on loan or received via accumulation, accretion or otherwise (I assume ‘otherwise’ being any other means of adding to the fund, including gifts). Is this correct?

Many thanks in advance.

I agree with interpretation (b).

I read it that further additions may be made to the trust fund by way of:

Further loan;

Settlement (which would include a gift into the trust);

Accumulation of income;

Capital appreciation; or

Otherwise (a catchall to cover any form of addition which the drafter at the time of rafting could not define, or was unaware of)

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

Thanks Paul, much appreciated. I think I was having one of those moments where I got myself in a muddle reading it too many times!

I agree with Paul, ie (b).

Malcolm Finney

Thanks Malcolm, I appreciate your response!