Bank accounts in trust

Lindagreenacre

When my father died, several years ago, he left some money that my husband and I are trustees for. My mother is allowed the interest in her lifetime, but not the capital. It will eventually come to me. The solicitor put the money into a high interest rate account with the Northern Rock. This account is in the names of my father (stating deceased) and my husband and I. Since then the interest on that account is worth diddly pop! and if I want to move it to an account giving a decent interest, it will no longer have trust status. I understand from them that there is no longer such a thing as an account in trust. What can I do?

dunstonh

I want to move it to an account giving a decent interest, it will no longer have trust status.

The trustees can move it into any account or investment (that accepts a trust arrangement).

I understand from them that there is no longer such a thing as an account in trust.

They may have chosen not to accept trusts for new accounts but trusts do very much still exist.

Primrose

I'm surprised when you say you can't move the money because surely you and your OH are the Trustees, and not the solicitor who is merely acting as a facilitator to administer the fund. I would have thought you could move, or get your solicitor to move the money into equities or bonds to get a higher return for your money unless it was specified that the investment had to be in 100% safe cash.
I'm wondering if your solicitor is just opting for the easy option and would re-investigate the terms of the Will specifying how the trust should operate because lots of trust funds with money from Wills operate with the money being invested in unit trusts and other non-cash methods.

Lindagreenacre

Yes, we can move the money, but Northern Rock says that there are no accounts with them that will allow us to have trust status and implied that they no longer exist.. I have asked a financial adviser, but he was unable to offer any advice. The money could go into my husband and my names, but as we are retiring soon, I do not want it to impact on our tax allowance.

yelf

Not all banks offer trustee bank accounts. I was involved with setting one up once and the manager of the bank didint understand and set up business account - idiot. Think it was Nationwide. Just ring a few banks and see if they can help.

Primrose

Surely if you move it to a higher interest paying account, even if Northern Rock had one you would receive more interest and this could conceivably affect the amount of tax you pay?