Loan agreement between
trustees and a beneficiary.
IMPORTANT NOTES – before completing the Loan Agreement between Trustees and a Beneficiary, please read the following notes.
1. This documentation has been produced for consideration by you and your legal advisers. The legal and any tax
effects of the Loan Agreement will depend on your individual circumstances and Legal & General (as defined
in Clause 4.3 of Part B of this Agreement) and its advisers accept no responsibility for ensuring that the Loan
Agreement meets your requirements.
2. Under this Loan Agreement, you (the Trustees) lend a cash sum forming part of the Trust Fund to a Beneficiary
of the Trust on an interest free basis. The amount loaned is repayable on your demand. Please note that this
Loan Agreement cannot pre-date the date of the Trust.
3. The Trustees should consider the impact that such a loan will have on other Beneficiaries, along with any tax
implications. Financial and legal advice should be obtained before completing the Loan Agreement and before
any demand for repayment is made.
4. Please note that Legal & General will only accept instructions from Trustees who have had their identities
verified. We may need to also confirm the identity of other individuals relating to the Trust. We may do this
by using reference agencies to search sources of information; this will not affect credit ratings. If this identity
search fails, we may ask the parties for documents to confirm their identities. By signing this Loan Agreement,
all parties to this Loan Agreement have consented that we can verify their identity and that, if required
by Legal & General, the Trustees will take all reasonable steps to obtain for Legal & General evidence of
identification for any of the Beneficiaries of the Trust.
5. Legal & General has drafted this Loan Agreement to reflect the law as at 1 January 2010. Legal & General and
its advisers cannot accept any responsibility for loss, damage or other claim that may arise from the use of this
Loan Agreement or the way in which you complete it. We therefore strongly recommend that you consult your
own legal adviser before proceeding.
6. Use CAPITALS and black or blue ink throughout. If you make a mistake while completing the Loan Agreement,
please correct the error by crossing out (do not use correction fluid) and all the parties to the Loan Agreement
should initial by the change.