Discretionary Trust

JohnRo

I'm looking for a ballpark number, what's an average typical cost - if such a thing exists - that I might expect to be charged from an IFA for setting up a discretionary trust linked to an investment bond?

Reaper

While I can't answer the fees question I don't think an IFA is qualified to set up a discretionary trust. You will have to involve a solicitor to do that. Attaching it to an investment product is not difficult so you needn't involve an IFA at all if you already know what you want to invest in.

Alternatively if you are willing to give up the flexibility of a discretionary trust then some investment companies will set up a bare trust for you for free. For example I used Baille Gifford for my son and I know many other Investment Trust firms similarly do it for no charge.

JohnRo

Thanks for the reply,

I already have the trust set up by an IFA with a lot of experience in tax and succession planning. It's attached to an offshore bond which incurred excessive commission fees and I'm just trying to gleen whether the establishment fees for the bond are being used to cover the cost of setting up the trust which wasn't explicitly charged.

I'm just after a ballpark figure for what it might realistically have cost them to set up a trust at the same time as the bond. Obviously I could ask them directly but I'm currently in dispute and don't want to do that so was seeking a ballpark market average to ascertain whether the commission charges are still extreme even with the trust factored in to the charges and accounted for.

dunstonh

If you used one of the insurance company trusts (i.e. their trust forms and documentation) then you would expect little or no additional cost. If you set up your own trust arrangement via a solicitor then the solicitor would charge. That is harder to put a figure on as of course different firms, locations etc can impact on the price. Also the type of trust and work involved can impact on the price. However, a ballpark figure would be around £500-£1500.

You may want to phone a [different] local solicitor and ask them what they would charge if it was a solicitor arranged trust.

If a solicitor did arrange the trust then you would not expect the IFA themselves to charge more as the IFA is not doing the work on that side. You would pay the solicitor directly.

JohnRo

Thanks for the reply

As you're aware which other readers may not be, what I'm looking for is the amount any agreed commission rebate might reasonably be reduced by to cover the additional cost of setting up a discretionary trust. I'll forward the details I'm working with privately.