ChatterBank23 mins ago
Legalities of a Directors Loan!
9 Answers
Hi there, my "Q" is pretty complex so I will try to cut this short ;) I am trying to build up a case against an Executor of my mother's will.....
Executor is saying that my mother took out a personal loan with him of �10.000...which he obtained by getting a Directors loan.....
I thought that Directors Loans were only supposed to be up to �5.000 (re-paid in 9 months)?
Is there any special reason that a Directors loan of �10.000 can be made?
Thankyou in advance :)
Executor is saying that my mother took out a personal loan with him of �10.000...which he obtained by getting a Directors loan.....
I thought that Directors Loans were only supposed to be up to �5.000 (re-paid in 9 months)?
Is there any special reason that a Directors loan of �10.000 can be made?
Thankyou in advance :)
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�5k is the maximum that can be loaned without HMRC getting involved (they will want a tax charge on the value of the loan). And even then the loan must e repaid within 9 months.
As far as I know there is no limit on what can be loaned - subject to authorisation being obtained - and subject to the tax charge.
But your question mystifies me. Is the Executor of your mother's will a shareholder in a limited company of which your mother was a director? - otherwise what is the link between any loan your mother may have had and this person?
As far as I know there is no limit on what can be loaned - subject to authorisation being obtained - and subject to the tax charge.
But your question mystifies me. Is the Executor of your mother's will a shareholder in a limited company of which your mother was a director? - otherwise what is the link between any loan your mother may have had and this person?
Its an awful situ :( My cousin was made Executor of my mother's will, There was outstanding monies in his bank acc the said �10.000 plus other monies to do with the estate...My cousin has eluded us all into believing that he gave her a loan of �10.000 as she was in dire straits when alive in 1999...In court last week he stated that he got a directors loan to pay her the money??? My mother had nothing whatsoever to do with his company! Thankyou for your speedy reply....this web is very tangled! :)
No, wrong terminology.
A Director's loan is where a limited company loans a director of that company money from the company's working capital.
The loan you describe was not that in relationship to your mother - wherever the cousin got the money from is irrelevant.
And it strikes me he can't just go about claiming money in the account came from him in the first place - where's the evidence.
A Director's loan is where a limited company loans a director of that company money from the company's working capital.
The loan you describe was not that in relationship to your mother - wherever the cousin got the money from is irrelevant.
And it strikes me he can't just go about claiming money in the account came from him in the first place - where's the evidence.
Right I got part wrong myself *feeling totally embarassed* He claims he gave her a loan himself in 1999 (from whereever?) then he said he had to get a directors loan to pay the debt off....Oops Sorry!
I feel quite annoyed and bitter over this person....he has lied and cheated under oath, even obtained Probate with a lie (he said their was nothing in the will/Estate worth over �2000 when he had a total of approx �25.000....he has absolutely twisted the truth to his advantage....He has paid us almost �9.000 and the other monies had been sitting in his bank acc since 2003 (year after my mother died) If you can understand this has gone far past being a "money" thing....my sisters and I feel he has betrayed my mothers last wishes....to pay off all her debts...First total he had was �46.000 to which he paid off �16.000 mortgage and a couple of silly little bills.....making sure they gained interest so more had to be paid, The only proof he had for this so called load was a very dodgy signature on photocopied paper! All I really need to know is how can I have closure to all of this? I feel the rest of my life will be in tatters now as I cant get over the way he was able to lie and cheat the court system without evidence (only shady) Here's hoping in my naivity there is a god! Sorry for waffle my mind is ready to pop!
I feel quite annoyed and bitter over this person....he has lied and cheated under oath, even obtained Probate with a lie (he said their was nothing in the will/Estate worth over �2000 when he had a total of approx �25.000....he has absolutely twisted the truth to his advantage....He has paid us almost �9.000 and the other monies had been sitting in his bank acc since 2003 (year after my mother died) If you can understand this has gone far past being a "money" thing....my sisters and I feel he has betrayed my mothers last wishes....to pay off all her debts...First total he had was �46.000 to which he paid off �16.000 mortgage and a couple of silly little bills.....making sure they gained interest so more had to be paid, The only proof he had for this so called load was a very dodgy signature on photocopied paper! All I really need to know is how can I have closure to all of this? I feel the rest of my life will be in tatters now as I cant get over the way he was able to lie and cheat the court system without evidence (only shady) Here's hoping in my naivity there is a god! Sorry for waffle my mind is ready to pop!
This company of his "cartmill & Brown trading as "Credidnote Ltd" went into liquidation in 2004...the last trading/accounts etc were in May 2002...before my mother had even died! Sorry Sir I know your head probably needs a break from this, wish mine could :(
Thankyou for you understanding and if anyone else would like to interveine (if you dare join the rabbit hole) please feel welcome...I am on a mission of revenge for my deceased mothers memory!
Thankyou for you understanding and if anyone else would like to interveine (if you dare join the rabbit hole) please feel welcome...I am on a mission of revenge for my deceased mothers memory!
Sorry to learn of your difficulties.
If the executor is unsuitable it is possible to go to the Courts to make an application for their removal. In the first instance you should approach the Probate Office dealing with the matter for (free) advice.
There should have clear Administration Accounts produced by now and distributed to beneficiaries.
If the executor is unsuitable it is possible to go to the Courts to make an application for their removal. In the first instance you should approach the Probate Office dealing with the matter for (free) advice.
There should have clear Administration Accounts produced by now and distributed to beneficiaries.
20th March 2008
To Whom ever this may concern...
I am writing this letter as I believe there has been a fraudulent claim for probate on 20th March 2003...
My reason's for concern are as follows...In 2002 my cousin was made Executor of my mother's will as she was aware that she only had two to four weeks to live (large carcenoma to the liver).
On 9th August 2002 my mother died....became Executor!
On 20th March 2003 Mr with-held information about my mother's (Mrs life insurance policy which was held with Norwich Union ref (Ms to the sum of �18.000 approx.
My mother had always told my sisters and I about this life insurance although Mr would not acknowledge it until 2005 (although it had been sitting in his bank acc gaining interest since 2003!)
I know that the said amount was not a special request for any beneficiary so basically Mr has eluded details over this money...
Please understand that this is not a money thing....it has gone way past that now....
We all went to court over this money and he lied on oath (yes I know my accusations are harsh but I believe them to be true) saying that he gave my mother a �10.000 loan in 1999 and provided a photocopied document with my mother's "supposed" signature on...There were no proof of accounts for this money, there were no accounts for his Directors loan to repay the amount borrowed (supposedly by my deceased mother) In fact the company Cartmill & Browne trading as "Creditnote Ltd" actually went into liquidation in 2004 last actions being done by the company in May 2002.
Newcastle Crown Court (acting as a county court) has this case which took place on 11th March 2008 recorded on tape....proof that he did have knowledge of the life insurance....If this money was not granted to a beneficiary and was for my mothers debt to him then where are all the ligitimate documents,
To Whom ever this may concern...
I am writing this letter as I believe there has been a fraudulent claim for probate on 20th March 2003...
My reason's for concern are as follows...In 2002 my cousin was made Executor of my mother's will as she was aware that she only had two to four weeks to live (large carcenoma to the liver).
On 9th August 2002 my mother died....became Executor!
On 20th March 2003 Mr with-held information about my mother's (Mrs life insurance policy which was held with Norwich Union ref (Ms to the sum of �18.000 approx.
My mother had always told my sisters and I about this life insurance although Mr would not acknowledge it until 2005 (although it had been sitting in his bank acc gaining interest since 2003!)
I know that the said amount was not a special request for any beneficiary so basically Mr has eluded details over this money...
Please understand that this is not a money thing....it has gone way past that now....
We all went to court over this money and he lied on oath (yes I know my accusations are harsh but I believe them to be true) saying that he gave my mother a �10.000 loan in 1999 and provided a photocopied document with my mother's "supposed" signature on...There were no proof of accounts for this money, there were no accounts for his Directors loan to repay the amount borrowed (supposedly by my deceased mother) In fact the company Cartmill & Browne trading as "Creditnote Ltd" actually went into liquidation in 2004 last actions being done by the company in May 2002.
Newcastle Crown Court (acting as a county court) has this case which took place on 11th March 2008 recorded on tape....proof that he did have knowledge of the life insurance....If this money was not granted to a beneficiary and was for my mothers debt to him then where are all the ligitimate documents,
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