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loan of gift

loan of gift

Postby preacherman » Fri Aug 04, 2017 8:53 pm

someone is a trustee, they are also acting as a project manager for renovation works to the charity building. The charity is run by a committee. The trustee may not have managed the project sufficiently, or was possibly not duly diligent, and paid a large bill himself without first bringing the problem before the committee.

the trustee is now calling it a loan to the charity. the committee agree that he should be repaid. How can it be repaid back to him so much per year, without being classed as a loan, (as it was not a loan really, as the committee never had any notice of it, or agreed to it at point of being made) so that if anything happened to him, it is not called in by his estate?

can a gift be repaid?
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Re: loan of gift

Postby Hairyloon » Fri Aug 04, 2017 11:51 pm

I am not seeing where there is a problem.
The bill needed to be paid else there would likely be a manure based propeller incident and the trustee thought the best course was to pay the bill and sort out the details afterwards.
The committee trusts the trustee to do the job and the trustee trusts the committee to recognise their responsibilities.
If either trust was misplaced then then there would be a problem, but there is nothing here to suggest that is the case.
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Re: loan of gift

Postby dls » Sat Aug 05, 2017 5:56 pm

A trustee is entitled to be indemnified by the trust for expenses properly incurred. Whether it was properly incurred is amtter of establishing his particular authority.
In this case it is a long way from obvious.
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Re: loan of gift

Postby Hairyloon » Sat Aug 05, 2017 8:57 pm

dls wrote:In this case it is a long way from obvious.

We have no information upon which to make any assessment, except that the committee have agreed to it and no reason has been given as to why they were wrong.
Indeed OP does not appear to question that decision, only the arrangements of the payment.
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