LOAN TRUST (CREATING FIXED TRUST INTERESTS) DECLARATION AND LOAN AGREEMENT

Transcription

1 LOAN TRUST (CREATING FIXED TRUST INTERESTS) DECLARATION AND LOAN AGREEMENT

2 Please refer to the notes in the margin when completing this form. Boxes A G should be completed clearly and correctly as described. Any amendments or correction of errors made before the deed is signed should be initialled by you and the additional trustees. Once completed, the Loan Trust declaration and loan agreement should be signed by the settlor and the additional trustees in the spaces provided on the last page. Note that the settlor (or each settlor) should sign once only. Signatures should be witnessed by an independent person who should sign and then print his or her full name and address. In Box A, insert the date the last person signs for example, 04/01/2016. This date must not be after the date of the bond application. BOX A DATE OF LOAN TRUST Date (DD MM YYYY) The settlor is the person who is creating the trust and making the loan to the trustees. You should insert your full name and address in Box B. If there are joint settlors, both names should be inserted in Box B. BOX B SETTLOR Full name(s) In Box C, insert the full names and addresses of the persons who have agreed to act with you as trustees. As settlor, you are automatically a trustee and do not need to repeat your details here. You must appoint at least one additional trustee. Under no circumstances should the settlor be the sole trustee. Where more than two additional trustees are required, these should be appointed by separate deed after the Loan Trust is established. Full details of all of the additional trustees are required for prevention of money laundering purposes. BOX C ADDITIONAL TRUSTEES First additional trustee Full name Nationality (list all if more than one held) Town/city of birth Country of birth Country of residence (if different or not UK) Country of any residential addresses (e.g. British, French, Irish) Which countries are you tax resident in? (If you are a US Citizen or resident in the US for tax purposes by any other means, then the US must also be included as one of your countries of tax residency.) By TIN, we mean your Taxpayer Identification Number or similar tax payer reference you hold for countries you are resident in. Please provide your TIN: 1

3 BOX C ADDITIONAL TRUSTEES (CONTINUED) Second additional trustee Full name Nationality (list all if more than one held) (e.g. British, French, Irish) Town/city of birth Country of birth Country of residence (if different or not UK) Country of any residential addresses Which countries are you tax resident in? (If you are a US Citizen or resident in the US for tax purposes by any other means, then the US must also be included as one of your countries of tax residency.) By TIN, we mean your Taxpayer Identification Number or similar tax payer reference you hold for countries you are resident in. Please provide your TIN: Insert details of the person(s) you wish to benefit and, if more than one, the percentage share (whole numbers only). Please note: the chosen beneficiaries and the share in which they benefit cannot be changed once the Loan Trust is established. If there is more than one beneficiary and no percentage share is indicated or the shares do not add up to 100%, each beneficiary will take an equal share. BOX D BENEFICIARY OR BENEFICIARIES First beneficiary Full name(s) Date of birth (DD/MM/YYYY) Nationality (list all if more than one held) (e.g. British, French, Irish) Town/city of birth Country of birth Country of residence (if different or not UK) Country of any residential addresses 2

4 BOX D BENEFICIARY OR BENEFICIARIES (CONTINUED) Which countries are you tax resident in? (If you are a US Citizen or resident in the US for tax purposes by any other means, then the US must also be included as one of your countries of tax residency.) By TIN, we mean your Taxpayer Identification Number or similar tax payer reference you hold for countries you are resident in. Please provide your TIN: Second beneficiary Full name(s) Date of birth (DD/MM/YYYY) Nationality (list all if more than one held) (e.g. British, French, Irish) Town/city of birth Country of birth Country of residence (if different or not UK) Country of any residential addresses Which countries are you tax resident in? (If you are a US Citizen or resident in the US for tax purposes by any other means, then the US must also be included as one of your countries of tax residency.) By TIN, we mean your Taxpayer Identification Number or similar tax payer reference you hold for countries you are resident in. Please provide your TIN: Third beneficiary Full name(s) Date of birth (DD/MM/YYYY) Nationality (list all if more than one held) (e.g. British, French, Irish) 3

5 BOX D BENEFICIARY OR BENEFICIARIES (CONTINUED) Town/city of birth Country of birth Country of residence (if different or not UK) Country of any residential addresses Which countries are you tax resident in? (If you are a US Citizen or resident in the US for tax purposes by any other means, then the US must also be included as one of your countries of tax residency.) By TIN, we mean your Taxpayer Identification Number or similar tax payer reference you hold for countries you are resident in. Please provide your TIN: First beneficiary Second beneficiary Third beneficiary Share% Total 100% Insert the amount (in whole pounds) you are lending to the trustees. BOX E ORIGINAL LOAN AMOUNT (whole pounds only) These details should correspond with the withdrawal instructions given by the trustees under the bond. BOX F PAYMENT DATE Leave blank if no withdrawals are to be taken. Fixed amount: either each payment (whole pounds) If there are two settlors, each settlor shall be entitled to the default loan repayments, in equal shares. or Frequency (please choose one only) % each year of the original loan amount Monthly Quarterly Half-yearly Annually First payment date (DD/MM/YYYY) This date must be at least 30 days after the start of the bond. If your chosen date falls within 30 days of the start of the bond, the first payment will not be paid until the same day of the following month. If you would like the law of Scotland to apply to your Loan Trust, you (or both of you, if more than one settlor) should sign in Box G. Otherwise Box G should be left blank and the law of England and Wales will apply. The law of Scotland would normally be selected only if the settlor(s) is/are resident or domiciled in Scotland. BOX G LAW OF SCOTLAND TO APPLY (Settlor (if more than one, both settlors) should sign here only if the law of Scotland is to apply to these trusts.) 4

6 THIS DECLARATION and LOAN AGREEMENT is made on the date shown in Box A on page 2 BETWEEN the Settlor described in Box B on page 2 and the Settlor and the additional Trustees described in Box C on pages 2 and 3 WHEREAS the Settlor has advanced by way of loan the Original Loan Amount specified in Box E on page 5 (or if there are two settlors each settlor has advanced a sum of half that amount) and may from time to time lend a further sum or sums on the same terms (but not in any circumstances so as to give rise to a disposal of property by way of gift) to be held upon the trusts and with and subject to the powers herein declared. NOW THIS DEED WITNESSES as follows: DEFINITIONS 1 In this trust form 1.1 the Settlor means the person or persons named in Box B on page the Trustees means the Settlor and the person or persons named in Box C on pages 2 and 3 and/or the other trustee or trustees for the time being of this trust 1.3 the Beneficiary means the person or persons named in Box D on pages 3 and 4 and no other person or persons 1.4 the Original Loan Amount means the sum specified in Box E on page 5 and the Loan means the Original Loan Amount and any further loan or loan made by the Settlor to the Trustees 1.5 the Trust Fund means all moneys investments and property at any time accepted and held by the Trustees upon this trust here declared whether by way of the Loan or by way of retention of income capital accretion or otherwise and all moneys investments and property for the time being representing the same or any part or parts thereof 1.6 Corporate Trustee means a trust corporation or other company authorised to undertake trust business THE LOAN 2.1 The Settlor has lent to the Trustees the Original Loan Amount for the purpose of investment in accordance with the terms of this trust and at the request of the Trustees has advanced the Original Loan Amount by a cheque drawn in favour of Scottish Widows Limited 2.2 The terms of the Loan are as follows: The Loan shall be free of interest The Loan shall be repayable by the Trustees on demand by the Settlor. If there are two settlors, each settlor shall be entitled to repayment of the Original Loan Amount in equal shares less any previous repayments received by that settlor Unless the Settlor shall otherwise direct the Trustees shall without demand repay the Original Loan Amount on the basis described in Box F on page 5. Where there are two settlors, each settlor shall be entitled to the default loan repayments, as specified in Box F on page 5, in equal shares TRUST PROVISIONS 3.1 The capital and income of the Trust Fund shall be held in trust for the Beneficiary absolutely 3.2 If more than one person is the Beneficiary the Trust Fund shall be held in trust in the percentage shares specified in Box D on page 5 or if no such shares are specified or if the shares specified do not total 100% then in equal shares absolutely 3.3 The Trustees shall have the power either to pay any sum falling due to any Beneficiary who has not attained the age of legal capacity to the parent or other guardian of such Beneficiary or to retain such sum and apply the whole or part of the income therefrom or the capital thereof for the maintenance education or benefit of such beneficiary as the trustees in their discretion determine with power to retain unexpended income until such beneficiary attains said age when the same shall be paid to him or her 3.4 Section 31 Trustee Act 1925 shall not apply to this trust 3.5 The Trustees shall at the request of any Beneficiary but at the cost of all Beneficiaries transfer the Trust Fund as that Beneficiary shall direct in relation to the share or shares specified in Box D on page 5 subject only to the prior discharge of any outstanding Loan the Beneficiary having attained the age of legal capacity 5

7 TRUSTEES POWERS 4 Subject to the right of all Beneficiaries acting together unanimously to direct otherwise the Trustees shall have the following additional powers: 4.1 to invest in policies of life insurance or any other kind of investment (heritable or moveable real or personal including wasting assets and whether income-producing or not) in any part of the world as if they were absolute owners beneficially entitled (and without any need to diversify investments) 4.2 to vary manage and deal with investments from time to time in their absolute discretion with power to dispose of or enter into any arrangement with respect to any of their rights as holders of any insurance policy or other asset as if they were absolute owners beneficially entitled and in particular (but without limiting the foregoing) in the case of any insurance policy to exercise any of the options and powers conferred by it and to encash surrender sell convert or otherwise dispose of it or any part of it or any of their rights as holders of it as they may in their discretion think fit 4.3 to accept as a good and sufficient discharge a receipt given by any parent or guardian of any Beneficiary who has not attained the age of legal capacity in respect of capital or income payable to or for the benefit of such Beneficiary 4.4 to delegate in any way and to any extent to any persons or corporations (including a Trustee) wherever situate or resident the exercise of any of the powers of the investment or management of the property for the time being forming part of the Trust Fund and to allow any such property to be registered in the name of or to be held by any person firm or corporation as nominee for the Trustees and to hold any investments in certificated or uncertificated form 4.5 to carry on the administration of this trust in any part of the world as the Trustees think fit CONFLICTS OF INTEREST 5.1 Any transaction by the Trustees which is authorised by this trust or by the general law may take place even though one or more of them acts in a dual capacity but only if there is at the time at least one of them who does not act in a dual capacity and who is satisfied that its terms are fair and for the purpose of this sub-clause 5.1 a person acts in a dual capacity if he or she is an individual who takes part in a transaction both in his or her capacity as one of the Trustees and in a personal capacity or takes part in his or her capacity as one of the Trustees in a transaction which involves a company of which he or she is a director or shareholder or a partnership of which he or she is a member 5.2 Any transaction by the Trustees which is authorised by this trust or by the general law may take place even though one or more of them acts in a dual capacity and for the purposes of this sub-clause 5.2 a person acts in a dual capacity if he or she takes part in a transaction both as one of the Trustees and in another fiduciary capacity as a trustee of another trust or settlement or as someone s personal representative or executor 5.3 Subject to the above or as otherwise expressly provided any Trustee may join or concur in exercising any power or discretion hereby or by law given to the Trustees even though he or she may have a direct personal or other interest in the mode or result of exercising the power or discretion TRUSTEES LIABILITY 6 No Trustee shall be liable for any loss or damage to the capital or income of the Trust Fund which arises through the exercise in good faith of any power given by this trust or by the general law and none who acts gratuitously shall be liable for any such loss or damage unless it arises through an act or omission which amounts to conscious wrongdoing TRUSTEES CHARGING CLAUSES 7.1 Any Corporate Trustee shall be entitled in addition to reimbursement of its proper expenses to remuneration for its services in accordance with its published terms and conditions for trust business in force from time to time 7.2 Any Trustee acting as a trustee in a professional or business capacity other than the Settlor shall be entitled to charge and be paid all usual professional or other charges for business done services rendered or time spent by him or her or his or her firm in the administration of this trust including acts which a Trustee not engaged in any profession or business could have done personally 6

8 APPOINTMENT OR REMOVAL OF TRUSTEES 8.1 The power to appoint new or additional trustees shall be vested in the Settlor during his or her lifetime 8.2 A person may be appointed as a Trustee even if neither resident nor domiciled nor carrying on business nor incorporated in the United Kingdom 8.3 The power of appointing additional trustees shall not be exercisable only because a Trustee remains out of the United Kingdom for more than 12 months 8.4 The Settlor shall during his or her lifetime have power to dismiss any Trustee by giving 30 days notice in writing to such Trustee so long as there shall be at least one Corporate or two individual Trustees remaining 8.5 Where there is more than one Settlor the power to appoint or dismiss a trustee shall be exercised jointly during the joint lifetime of the Settlors and by the survivor during the survivor s lifetime EXCLUSION OF SETTLOR 9.1 Without implying in any way that the repayment of the Loan is a benefit then except in the repayment of the Loan or Loans made to the Trustees by the Settlor no discretion or power by this trust or by law conferred on the Trustees or any other person shall be exercised and no provision of this trust shall operate directly or indirectly so as to cause or permit any part of the Trust Fund or the income thereof to be lent to or in any way paid or payable to or applied or applicable for the benefit of the Settlor in any way in any circumstances whatsoever 9.2 The prohibition in this clause shall apply notwithstanding anything else contained or implied in this trust PAYMENT ON INSTRUCTION OF TRUSTEES 10 The receipt of the Trustees or any person or persons or organisation nominated in writing by the Trustees jointly for the purpose of receiving payment of any moneys shall be an absolute discharge to the person making the payment for the payment of such moneys and that person shall thereafter be under no obligation or duty to be concerned with the application of such moneys GOVERNING LAW 11 This trust shall be governed by the laws of England and Wales and the construction effects and administration of this trust shall be subject to the jurisdiction of and in accordance with English law PROVIDED THAT if the settlor has signed Box G on page 5 the trusts declared shall be governed by the laws of Scotland and administration of these trusts shall be subject to the jurisdiction of and in accordance with Scots law and construed accordingly 7

9 SIGNED and DELIVERED AS A DEED by the said Settlor s name Settlor s signature in the presence of Witness name Witness signature Witness address SIGNED and DELIVERED AS A DEED by the said Settlor or trustee s name Settlor or trustee s signature in the presence of Witness name Witness signature Witness address SIGNED and DELIVERED AS A DEED by the said Trustee s name Trustee s signature in the presence of Witness name Witness signature Witness address 8

10 SIGNED and DELIVERED AS A DEED by the said Trustee s name Trustee s signature in the presence of Witness name Witness signature Witness address DISCLAIMER This document is produced by Scottish Widows as a standard form for use with the Loan Trust only. It is a document with legal significance which may affect the rights, obligations and tax position of the settlor and beneficiaries. You should not sign this form unless you understand its effects and are satisfied that it achieves your objectives. Your attention is drawn particularly to clause 6 which has the effect of exempting the trustees from liability in some circumstances (note that liability for repayment of any outstanding loan made by the settlor is not excluded). Scottish Widows strongly recommends that independent professional advice is sought if there are any doubts about the form or its consequences. Scottish Widows Limited. Registered in England and Wales No Registered office in the United Kingdom at 25 Gresham Street, London EC2V 7HN. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number /16