does the 50k guarantee cover trustee accs?

buildrum

Hi,

I know someone will know the answer so can i ask:

If i put 50k in with a provider and an additional 50k in with the same provider in my sons name(as it is his money) with me as a trustee,as he is only 3yrs old,will all of the 100k be covered in the event of!

Thanks in advance

Jon

Rhymsta

I opened an account for my baby son with the Scarborough and I had to be the trustee. They told me that his money was 'added' onto mine so it would only really be me that was covered. However, I was told at another building society that I could open an account for him in his own name but would obviously have to sign for him and they said he would have his own £50k compensation cover.
I'm not really sure what to believe.

Reaper

My understanding of trusts is that it legally counts as your son's money, and it makes no difference who the trustees are. I assume that the FSCS would take the same line.

opinions4u

The beneficiary is treated as a separate entity, so basically you are both covered.

"Trustees
If a claimant’s claim also includes a claim as a trustee, his or her claim as trustee will be treated as being
separate from the claim in his or her own right. If the same person claims as trustee for different trusts,
these will be treated as claims of different claimants. If a group of people claim as trustees their claim will be
treated as that of a single person. If the claimant has a claim as a bare trustee for one or more beneficiaries,
the beneficiary or beneficiaries will be treated as having the claim. There are further rules relating to
trustees."

http://www.cumberland.co.uk/pdf/fscs.pdf

buildrum

Thanks to all.As allways