Nephews Trust Money

Uncle_Pete

I am one of two trustees for my two Nephews. They are 7 years old and live in Malaysia with their Parents (my Brother and His wife) my brother is the other Trustee. Our problem is that the Money in trust for them is held in one of my personal accounts under my name. we are told that we cannot open separate accounts for them over her because they are not UK residents, if we transfer the money into their accounts in Malaysia they will lose considerable sums due to the exchange rate. So our decision is to try and keep the Money in the UK until the boys are of age to be able to decide what they want to do with the money (hopefully use it for the University fee's etc) as per the benefactors wishes. So do we have any options that we have not discovered yet?

browneyedbazzi

Have you spoken to a bank about opening trust accounts (rather than trying to open regular current/savings accounts for the children)?

It may be worth speaking to an international bank like HSBC about trusts.

Keeping the money in your own account under your name isn't a very good situation as it won't be tax efficient (usually part of the point of a trust) and could cause problems should anything happen to you as the money will be part of your estate.

maman

browneyedbazzi wrote: »

Have you spoken to a bank about opening trust accounts (rather than trying to open regular current/savings accounts for the children)?

It may be worth speaking to an international bank like HSBC about trusts.

Keeping the money in your own account under your name isn't a very good situation as it won't be tax efficient (usually part of the point of a trust) and could cause problems should anything happen to you as the money will be part of your estate.

Just a comment on this post:

If there really isn't another way then you do need something in your will to ensure this money goes to your nephews or your brother so that he can administer it in future. As for the tax efficiency then putting it in ISAs over time (assuming you've not used the allowances yourself) would help especially as it might be there for 10 years+.