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Clare
Clare, Solicitor
Category: UK Property Law
Satisfied Customers: 33533
Experience:  25 years exeperience
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My son borrowed a large amount of money approximately

Customer Question

My son borrowed a large amount of money approximately £400,000/- from my disabled wife's trust account (originally set up for her care needs) to buy a property which he would later sell and return the money, he bought a commercial retail shop in his name over 5 years a go, we have nothing in writing but the money trail is there as proof, now he has had a dispute with his wife and she is claiming that she has a right on it, we need the money for my wife's care needs because she is paralysed and needs full time carers.
He is willing to return the money or property but his wife has put a claim on it through county court. My wife is paralysed chest down and is dependant on Carers 24/7, the money was originally from an insurance claim after a car accident,
What does the law say
Submitted: 11 months ago.
Category: UK Property Law
Expert:  Clare replied 11 months ago.

Hi

Thank you for your question

My name is Clare

I shall do my best to help you but I need some further information first

Was the loan documented?

Do you mean that his wife has made a claim within the financial side of the divorce?

Customer: replied 11 months ago.
The loan was not documented but it was agreed between my son and my two daughters who are trustees for my wife that the money he took was a loan and he would return it by selling the property and transferring the money back into the trust account or he would transfer the property to the trust, his wife had no part in this deal, she has now separated from him and is claiming that this property is part of his estate
Customer: replied 11 months ago.
his wife has made a claim n the financial side of the divorce
Expert:  Clare replied 11 months ago.

I have to be blunt - what the Trustees have done is actually a breach of their Trust and amounts to misconduct.

However it is not too late to document the agreement to the loan (although hard to justify) and I suggest that this is recorded retrospectively but with reference to the money trail showing the move of the funds from the Trust to your son.

Your son will then be able to use this to show where the assets came from

It will be harder for him to prove that it is repayable given the way that it was given, but the family Court will none the less understand that it is a debt that needs to be repaid and this will be taken into account in the settlement

Please ask if you need further details

Clare

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