Special Needs Trust Fund - advice on fees please

Reformed

A few years ago my OH was involved in a very serious car accident and sustained physical injury for which he was compensated by the other drivers insurance company.

The compensation is held in a special needs trust and managed by the solicitors who won the money. The flat we live in now has been purchased by the trust and the rest of the money is spread over a number of investments.

We have just received an invoice from the solicitors for legal costs to manage the trust for the period 8th June to 21st October 2008.

This is what it says
"To include all correspondence, personal and telephone attendances, drafting, perusal and engrossment of all necessary documents and general care and conduct and advice throughout" - fees 642.70 + VAT

" X 4 Telegraphic transfers" fees 96.00 +VAT

Total incoice 867.97 to be debited from trust.

Is this a fair amount. OH has not had any face to face contact with them and apart from the telegrapic transfers has not spoken to them except to get a few cheques issued to pay the credit card etc... no more than 10 cheques have been written.

Seems a hell of a lot of money for 4 months.

Can anyone help?

somebody_else

Not sure that I can help, reformed, but you're right - it does seem to be rather a lot. Having said that, some Solicitors can charge as much as £200 an hour, so it would only be just over an hour's work a month.

I would be inclined to ask them for a more detailed breakdown of their costs, so you can see where the money is going.

"Telegraphic transfers" - que?

Reformed

When you need to withdraw amounts from investment funds and have them deposited immediately into your current account - costs money to get your hands on it faster!

somebody_else

Ah, thanks. Still sounds like quite a lot for something that would take the authorised person 60 seconds to do.

foxxymynx

Put it in a special needs trust bank account. Cater and Allen a private bank in London do them and they're fairly good. They don't charge an annual fee

Reformed

Put all the money in the fund in the account? That's the thing, the solicitors have a financial branch that have spread the investment across bonds in order to make a maximum return, but as far as I can tell this is related solely to the solicitors overseeing the fund - I will write to them.

Savvy_Sue

The first obvious saving is to ask for future transfers NOT to be made by Telegraphic Transfer but by some 'normal' means like BACS. As long as you know the money's coming by a particular date, it surely doesn't matter if it takes a few days to move from one a/c to another or a few minutes, plus BACS is speeding up these days, isn't it?

Oh, and you have the right to have the bill 'examined' or something like that. Brain has shut down so hope someone more awake will know what I'm talking about and find details.

Reformed

Thanks Savvy Sue I have been looking into this. I wish OH took more interest in this!

foxxymynx

Reformed wrote: »

Put all the money in the fund in the account? That's the thing, the solicitors have a financial branch that have spread the investment across bonds in order to make a maximum return, but as far as I can tell this is related solely to the solicitors overseeing the fund - I will write to them.

The bank trust funds have interest like a normal bank, about the same as that off a high rate savings account (I may be wrong about the high rate bit) so it is worth looking into.

Dillu

Hello Reformed

Solicitors have various duties about ensuring best places to invest and they probably have to continually review that.

I have to declare an interest here. I work in an accounts department for a firm called Millbank Solicitors and see what they have to do every month on probate and trust matters to ensure they are getting the best return for their clients.

Approx an hour a month is a reasonable amount of time for someone to keep any eye on the trust. I know my boss charges £150 per hour for this type of work, so your solicitors bill seems about right.

The bacs suggestion is spot on. Tell them 3 days before you need the cash and there should be no reason why they cant send it by bacs. Its free.