Hi all,
I have a NRBDT which was set up under the terms of the first spouse’s will, appointing their wife and two children as trustees.
The Trust consists of a 50% share of the property, some shares as well as cash.
There is a promissory note loaning some of the cash and shares to the wife, to repay on her death.
Wife has now passed away leaving a taxable estate and upon reviewing the promissory note, it is not dated, there is no reference to what index the loan is to be linked to, nor was it signed and agreed by all three trustees (the wife signed it only).
I understand it may be possible to waive the index linking but given the above, there may be difficulty in calculating this. I wondered if the promissory note was even valid at all and if, with this in mind, there would be an argument to say the loaned amount was instead appointed to the wife and if this would be more beneficial than treating it as a loan of the original amount without the index linking.
The Trustees and Beneficiaries are the same people.
Thank you.