UK Property Law
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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?
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