Trustee Bank Accounts for a Minor

Rooibos

I might be being a bit dense here but I'm not used to dealing with investments and savings.

My son is 16. He is due to inherit a LOT of money after his father (my ex-husband) died a few months ago. The legal team have advised I need to open two bank accounts in trust for him, to not be touched until he is 18. One account to be for the sale of his dad's property, and the other for the pensions to be paid into. My sister will be the other trustee with me.

I have two questions if anyone can kindly help.

1) Why have I been advised to open two accounts?

2) I've been to a few bank/building societies to ask about accounts where we are trustees for him until he turns 18. I haven't found one yet that does any for an over 16. The ones I have spoken to have all said the money's his at 16 to do with what he wants. I have explained to them that it's money from an estate/pension, hence it has to be held in trust until 18. So - where should we be looking for such accounts if High Street banks and building societies don't do them?

MrJester

Rooibos wrote: »

I might be being a bit dense here but I'm not used to dealing with investments and savings.

My son is 16. He is due to inherit a LOT of money after his father (my ex-husband) died a few months ago. The legal team have advised I need to open two bank accounts in trust for him, to not be touched until he is 18. One account to be for the sale of his dad's property, and the other for the pensions to be paid into. My sister will be the other trustee with me.

I have two questions if anyone can kindly help.

1) Why have I been advised to open two accounts?

2) I've been to a few bank/building societies to ask about accounts where we are trustees for him until he turns 18. I haven't found one yet that does any for an over 16. The ones I have spoken to have all said the money's his at 16 to do with what he wants. I have explained to them that it's money from an estate/pension, hence it has to be held in trust until 18. So - where should we be looking for such accounts if High Street banks and building societies don't do them?

Cant the legal team advise where these kind of accounts can be opened?

RAS

I assume the bank account for pensions etc is to be used for day to day expenses incurred from now until his 18th birthday. So you can arrange extra sport sessions. holidays etc in the next two years. This will be held in trust with you and sis as trustees

The bank account for lump sums like the house would be money that he is only given on his 18th birthday and as trustees it is your job to maximise the inheritance in line with the rules of the trust?

But please clarify with the legal team as you need to understand the rules for each trust.

Rooibos

I've dealt with five different solicitors from the legal team and their advice differs on a number of points so I am confused. I even went to see two different solicitors last week for them to explain what the legal team meant and they couldn't clarify either!

I raised a complaint and am currently awaiting the outcome of the investigation, which should take two weeks... (and I'm now at three weeks) So, apart from the complaint, I'm not in contact with them for the time being, until the investigation is sorted.

Rooibos

I assume the bank account for pensions etc is to be used for day to day expenses incurred from now until his 18th birthday. So you can arrange extra sport sessions. holidays etc in the next two years. This will be held in trust with you and sis as trustees

I have been told by all seven solicitors I have so far dealt with that none of the money can be used now for day to day expenses. Shame - that was what I was hoping for. I no longer get my CSA maintenance from ex but, tough, got to get on with it. My son is going on a school holiday in February which, his dad was going to pay half of. I'm definately not allowed to use any of the money for that, I've to pay for all of it while I'm maintenance down .

The bank account for lump sums like the house would be money that he is only given on his 18th birthday and as trustees it is your job to maximise the inheritance in line with the rules of the trust?

But please clarify with the legal team as you need to understand the rules for each trust.

Who write the rules of the trust - some of the correspondence says the trustees do - is that me and my sister, or do they mean the Pensions?

getmore4less

I am no expert but have been through this for smaller amounts for minors and a another trust which does have a trustee account with barclays.

Who were the executors?

What does the will say?
That will set up the terms of the trust.(a lot may be default if not explicit)

What do the pension people say?
I think they decide the terms of that trust.

I think you open the account(s) in your name(s) as trustees not the childs name which is where the confusion on access may be coming from.

This may create a financial link as a joint account holder I have one with my sister but have not checked.

As it is a lot of money you will need to take financial advise to protect yourselves as trustees, solicictors are no good for this you need a qualified financial advisor and they may have a better idea of how set up accounts/investments as trustees.

Rooibos

getmore4less wrote: »

I am no expert but have been through this for smaller amounts for minors and a another trust which does have a trustee account with barclays.

Thanks I'll try Barclays

Who were the executors? - me and my sister

What does the will say? - No will - he died intestate
That will set up the terms of the trust.(a lot may be default if not explicit)

What do the pension people say? I have no idea - they are liaising with the Legal team
I think they decide the terms of that trust.

I think you open the account(s) in your name(s) as trustees not the childs name which is where the confusion on access may be coming from. Ah - possibly

This may create a financial link as a joint account holder I have one with my sister but have not checked.

As it is a lot of money you will need to take financial advise to protect yourselves as trustees, solicictors are no good for this you need a qualified financial advisor and they may have a better idea of how set up accounts/investments as trustees.

- Maybe I need to shop around for Financial Advisers then. (Perhaps I won't go to the one that's the same company as the Legal team - they haven't proved very trustworthy so far!)

RAS

getmore4less wrote: »

What does the will say?
That will set up the terms of the trust.(a lot may be default if not explicit)

Well if he died intestate then the terms of the non-pensions Trust are going to be the defaults. There should be someone who can refer you to the default rules.

g6jns_2

Rooibos wrote: »

I might be being a bit dense here but I'm not used to dealing with investments and savings.

My son is 16. He is due to inherit a LOT of money after his father (my ex-husband) died a few months ago. The legal team have advised I need to open two bank accounts in trust for him, to not be touched until he is 18. One account to be for the sale of his dad's property, and the other for the pensions to be paid into. My sister will be the other trustee with me.

I have two questions if anyone can kindly help.

1) Why have I been advised to open two accounts?

2) I've been to a few bank/building societies to ask about accounts where we are trustees for him until he turns 18. I haven't found one yet that does any for an over 16. The ones I have spoken to have all said the money's his at 16 to do with what he wants. I have explained to them that it's money from an estate/pension, hence it has to be held in trust until 18. So - where should we be looking for such accounts if High Street banks and building societies don't do them?

I suggest you consult an IFA because if it is a large amount of money then there are better inv estments than putting it in a bank account.

securityguy

Rooibos wrote: »

I assume the bank account for pensions etc is to be used for day to day expenses incurred from now until his 18th birthday. So you can arrange extra sport sessions. holidays etc in the next two years. This will be held in trust with you and sis as trustees

I have been told by all seven solicitors I have so far dealt with that none of the money can be used now for day to day expenses.

That's highly unlikely to be true. If the money is coming from a death in service benefit then it's explicitly intended for the benefit of the child now, not later, and situations where people live in penury for years with the money coming later are undesirable. Pensions and death in service benefits are paid by the pension scheme, and don't usually go through the estate. You should query this.

Edit to add: and trustees have the power to advance money anyway.

theoretica

As security guy says, I think your solicitors are wrong. Or there is a miscommunication about what a day to day expense is (food maybe, school trips no). This site http://www.thewillsite.co.uk/legal_wills_uk.php says that "the Trustees decide what income and/or capital can be used for the benefit of the children e.g. school fees."