Trustee Savings Accounts

SJP21

My brother and I had to set up a Trust Fund when our mum died for all her grandchildren. This is all up and running but her Will specifies that the grandchildren have the money on their 21st birthdays. We put some of the money into a 3 year fixed term deposit account with Lloyds bank which has just come to an end and need to invest some of it again. This was for 3 of the grandchildren. One of them is 21 so we have to reinvest what is left for the other two. One will be 21 in two years and the other in five years. I am finding it really difficult to find somewhere with a decent interest rate that we can open the account in the name of the Trust as opposed to our own names as I presume if it is in our names we will be paying tax personally rather than the Trust? We opened the last one in our own names and in retrospect I don’t think we should have. I am finding it really confusing to find somewhere . Please can you help. I am finding it really difficult to know where to invest this money and obviously want to do the best thing. I do not want to take risks, especially since one child has only 2 years to go and the other 5 years. Please could someone point me in the right direction.
Thanks

xylophone

If this money was left in trust then it should not have been invested in your own names.

You would have had to have regard to the exact terms of the will - was the money left specifically to each child to be accessed on that child's 21st birthday or was there a lump sum left to be distributed to any child who reached the age of 21?

At all events in view of the age restriction this could not have been a bare or simple trust - there are tax considerations.

https://www.gov.uk/trusts-taxes/overview

http://www.hmrc.gov.uk/trusts/types/

You may wish to consult the solicitor who drafted the will or see http://www.step.org/online-directory