What's the best way to set up a trust fund?

saucy77

I'm going to be dealing with my dad's will when he passes and I need to set up accounts for the grandchildren in trust until they are 18 or 21.

There is no specific instructions only that each child gets the same amount 1k put in trust for them. However, the provisions are for 8 grand children, but only 7 exist at this moment.

What is the best way to go about this? As I don't wish their parents to be able to access the trust until the respective child reaches maturity age.
My oldest son will be 18 in a couple of weeks and I know for a fact that he will waste he's whole inheritance and don't wish him to do so. Is there anything I can do about this?

The youngest child born is 18 months old, she already has a trust fund set up by the government and I want to cover all eventualities that if her parent's split up (heaven forbid that it happen, but we have to face facts) that she will be the only person to access her inheritance. Also the fact that you can only put an extra £1,200 per year into the account could pose a problem as I think my brother puts extra in there already.

I've looked at the children's Bonds but they only go til the child reaches 16 for what I can see. Does anyone else know of any other options?

The unborn grandchild is also to gain from this, as far as I know there is no option to put this one away safely. I think I would do a Bond for this one for at least 5 yrs and then convert it into to trust when it reaches the first tier at least.

What are your thoughts?
Any help will be much appreciated.

property.advert

Firstly, I'd write the will up to indicate £1000 for each grandchild or £x or x% split between the grandchildren rather than £1000 for Tom, !!!!!! Harry etc. just in case the brood gets larger before your father dies.

I opted out of CTFs because they gave no flexibility. You put in for 18 years and then daft Jonny goes and blows it on dope on his 18th birthday and all your sacrifice over the years is wasted.

atush

What I do with my kids is i opened savings accts for them, and then didn't give them access by changing the acct when they got older. I 'open' it for change to a current acct when they go to Uni.

Another way is to set up an investment as a bare trust, in your name with theirs as the designation. Then I just don't tell them about it. If they don't know about it, they wont ask where it is and how to spend it lol. And I give them access to ti at age 21-22 say. I have done this iwth investment trust savings plans, and a small amt of premium bonds.

SeniorSam

You could set up a Discetionary Trust for the grand children and the Trustees can invest into whatever accounts they wish, so one for each grandchild. The difference being that a Bare Trust is a very specific vehicle and only the beneficiary can benefit at a specific time, if appropriate or not. A Discretionary Trust however, is in the name of the Trustees and held for the benefit of the beneficiaries at the DISCRETION of the Trustees, who may pass on the inheritance at a more appropriate time, in full or in part as the Trustees agree.

Discretionary Trusts are more widely used than Bare Trusts, so make sure you understand the workings of both before you set anything up. You should also be aware of the Trust wording in your father's Will to ensure that it fits the bill.

Bank and building society accounts are best, as they are more secure and fixed rates can be obtained and built up gross, as the children will be non tax payers.

Hope this helps

Sam