Readers' forum : Settlor or not?

The property in a discretionary will trust consists of land residential property and cash. The residential property was let until it was decided to obtain planning permission to divide it into several dwellings. The trust cash was all used to finance this development but more was needed. One of the trustees loaned funds to the trust and paid for some expenditure. She owns shares in a private company which also loaned money to the trust to help pay for the development. The trust does not own any shares in that company. The trustee is not a beneficiary of the trust but her husband is. Subsequently funds have been obtained from a bank and so the amounts ‘loaned’ by the trustee have been repaid to her. The amounts ‘loaned’ amount to only £3 000 or so over a period of years. The trust assets are worth...