Discussion
My kids have been left a sum by their grandparents to be placed in trust until their 20's. I am to be the trustee.
Great!
Except I haven't a clue what to do next.
I assume I have to open two separate bank accounts for them, in my name, controlled by me but for their benefit. Or is it considerably more complicated? Are there any banks that either specialise in such accounts?
Is anyone on here knowledgable about such things?
Great!
Except I haven't a clue what to do next.
I assume I have to open two separate bank accounts for them, in my name, controlled by me but for their benefit. Or is it considerably more complicated? Are there any banks that either specialise in such accounts?
Is anyone on here knowledgable about such things?
NDA said:
I'm not entirely sure. My mother's will states that the money is to be 'put in trust' until they are 20. I don't think there are any further instructions.
OK.I think the executor of the will should sort it out. If that's you as well then I *think* you need to set up a trust account with a bank. This will ensure that should anything happen to you then it won't form part of your estate (Eg death)
But tbh I am only an amateur thanks to my father's recent death.
It's a difficult thing to self educate using the internet as all the stuff I find relates to solicitors and insurance brokers.
I do however run trust accounts at work so if you want a sample wording for the accounts we use the pm me and I will send one over.
There's no such thing as an informal trust.
A trust has been created under the will from what you say OP. If there's not one drawn up already as part of that you will need to get one sorted out, or one each per child depending on the wording etc. You need to speak to a solicitor who's practiced in this.
If you are named as a trustee, and you may not be and even if you are doesn't mean you have to do the job, you have a number of legal responsibilities. Such as ensuring that the instructions of the settlor are carried out, that the trust takes professional advice (takes does not mean follows, but you should at least seek it), has a regular meeting of trustees and puts in tax returns for said trust.
Seek professional advice, it can be complex!
A trust has been created under the will from what you say OP. If there's not one drawn up already as part of that you will need to get one sorted out, or one each per child depending on the wording etc. You need to speak to a solicitor who's practiced in this.
If you are named as a trustee, and you may not be and even if you are doesn't mean you have to do the job, you have a number of legal responsibilities. Such as ensuring that the instructions of the settlor are carried out, that the trust takes professional advice (takes does not mean follows, but you should at least seek it), has a regular meeting of trustees and puts in tax returns for said trust.
Seek professional advice, it can be complex!
You need a Bare Trust and a solicitor can handle this very quickly and simply. I would expect to pay no more than a couple of hundred pounds.
Alternatively, depending of the ages of the children you may want to consider a selection of low cost index trackers to aim for higher long term returns.
Most platforms will then provide you with the Bare Trust Deed for free.
Alternatively, depending of the ages of the children you may want to consider a selection of low cost index trackers to aim for higher long term returns.
Most platforms will then provide you with the Bare Trust Deed for free.
JulianPH said:
You need a Bare Trust and a solicitor can handle this very quickly and simply. I would expect to pay no more than a couple of hundred pounds.
Alternatively, depending of the ages of the children you may want to consider a selection of low cost index trackers to aim for higher long term returns.
Most platforms will then provide you with the Bare Trust Deed for free.
Thank you... Just received thisAlternatively, depending of the ages of the children you may want to consider a selection of low cost index trackers to aim for higher long term returns.
Most platforms will then provide you with the Bare Trust Deed for free.
"The trust already exists. It was set-up via your mother's will so no need for anything further to set it up. The idea is that the executor passes things over to you so he would no longer be involved. "
So it should be moderately straightforward.
NDA said:
Thank you... Just received this
"The trust already exists. It was set-up via your mother's will so no need for anything further to set it up. The idea is that the executor passes things over to you so he would no longer be involved. "
So it should be moderately straightforward.
Very straightforward. I assume you are named as the Trustee (as the solicitor is asking you to take on this role) and you can therefore invest the assets as you see fit (subject to any limitations put in place) to deliver the best future return for the Beneficiaries."The trust already exists. It was set-up via your mother's will so no need for anything further to set it up. The idea is that the executor passes things over to you so he would no longer be involved. "
So it should be moderately straightforward.
You can keep the money in cash for certainty or if you have five years plus before needed you could select a low cost global tracker which could deliver much higher returns - but could equally fall in value (hence needing at least five years to invest).
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