Loanback

For example, a unit-linked office may require the borrower to have part at least of his personal pension premiums invested in units in a special fund from which the office makes loans to loanback borrowers.

Furthermore, the Target plans provide a guaranteed loanback facility with loans from as little as £5,001.

Most of the plans have loanback facilities, which allow you to use your pension to get a loan.

A prearranged loanback of the entire gift property itself (rather than just the income therefrom) may well be disregarded as being merely a grantor retained control over the property, thereby causing the entire amount of the "loan" to be included in the grantor's estate.

The following, in combination, may avert an implication of prior agreement: (a). Use of an independent trustee; (b). Reasonable time between creation of trust and loanback.

A more modest approach is for the parent to give money to a child, followed by a loanback to the parent.