Investment Trusts (UK)

barny.blue's Avatar

barny.blue

12 Oct, 2019 12:15 PM

Hi,

I'm trying to figure out how to set up an investment Trust on MD. To clarify, this is where someone makes a loan to a Trust who invest that in an investment bond which grows and returns income to the Trust. The Trust then sends repayments on the loan back to the original person who made the loan.

I've no problem with the investment end of it, but do with the loan part because the loan is an asset as far as the original person is concerned but when the repayments are made, it increases the balance, rather than decreasing it. But as far as the Trust is concerned the loan is a liability. If I enter the loan as a liability for the original investor, that's wrong for their net worth. I think the route of it is that the Trust and the person making the loan are different legal entities and MD is really set up for one identity per file. So, Ive got round this by creating a separate MD file for the Trusts...but that means double entering the transactions each month (not exactly the end of the world). Just wondering if anyone had a clever solution that I hadn't thought of.

Thanks,

Steven.

  1. System closed this discussion on 11 Jan, 2020 12:20 PM.

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