NS&I in trust ?

Reaper

alahol2 wrote: »

The best you can do is:
1) Husband = £15K
2) Wife = £15k
2) Husband in trust for wife = £15k
3) Wife in trust for husband = £15k
So the max total is £60k

And it's all fully within the terms and conditions.

Please quote the T&C you are referring to. My interpretation of clause 44 is only joint accounts get excluded, do you read it differently? You may well be right, I'm just trying to nail it down.

alahol2

Just realised where we may be at cross purposes. Higueron can only get to £45K because he's already bought a £15K certificate in joint names. If he has the cash it would pay him to cash in the joint certificate and buy one in his name and one in his wife's.

alahol2

Reaper wrote: »

Please quote the T&C you are referring to. My interpretation of clause 44 is only joint accounts get excluded, do you read it differently? You may well be right, I'm just trying to nail it down.

It is clause 44. It speaks about joint names but it is the name of a Trustee and the name of a beneficiary. The trustee is treated differently from an individual even though they are the same person.
So an individual can hold £15K in his own name, he can also hold £15K in trust for someone else. The amount he holds in trust does not count against his own limits. If, as a trustee, the amount he holds is held in joint names then that amount does not count towards the limit of the beneficiary.

I admit it sounds daft but that is what the rules say.

Reaper

I have been Googling to try to find the answer. There are suprisingly few references to it. I would have thought such an enourmous loophole would be pointed out every time the maximum amount is quoted but it seems not.

I have found a couple of forum discussions about previous issues saying it is possible as you have described, so I guess my intepretation must be wrong. Though I would be more confident if I could find a financial site stating it works like that.

Loopholes like this are the sort of things Martin should writing about on MSE! Maybe we should point it out to him.

alahol2

I have just re-read your earlier post and I think you may be right about being able to set up multiple accounts. There is no mention about the maximum amount a trustee can hold. Also, there is apparently no limit to the amount that a beneficiary may have held in trust for them.
If that is correct then, in theory, I (the trustee) can hold as many certificates in trust for my wife (the beneficiary) as I wish.

Maybe Martin should be looking at this...

kidmugsy

What happens if I (as trustee) buy an ILSC for my wife (beneficiary) and then I die?

dzug1

kidmugsy wrote: »

What happens if I (as trustee) buy an ILSC for my wife (beneficiary) and then I die?

In a normal trust situation a replacement trustee would have to be appointed.

dzug1

tillycat123 wrote: »

. Is it a good idea for husbands and wifes to be trustees on each others? Is it easier to sort out in the future if something was to happen to the spouse by doing it this way?

It probably actually makes it more difficult

higueron

It took a bit of time for you guys to cotton on to my post but at last you are mostly agreeing with me I believe it is a loophole and in my original post I said I had asked the NS&I helpdesk if I was understanding the rules correctly and they confirmed that my understanding was correct we can have 45k between us or if I had taken my wife and myself certificates out separately then we could have had 60k

IronWolf

I was thinking of getting some of these. Are you only allowed 1 per person or is it £15k max per person? Because I was thinking of splitting mine into 2 £7.5ks just in case I need to withdraw some early, is that allowed?