Bank account for trust fund from will money?

rosiedoon

Hello all

My mum died recently and left her flat to myself and my other 2 siblings. We are in the process of selling the flat. My youngest brother has acute psychiatric illness (paranoid schizophrenia) and mum stated in her will that she would like the money that is to go to my brother put in an account as a trust fund and for myself and my sister - executors of the will - to manage my brother's money, i.e. for a certain amount to be made available to him every whenever. This is what we're trying to set up.

My brother has a current account with Metro Bank. He has been on disability benefits for many years, and is 40 years old.

What sort of bank account would be best for this? Should we simply open a simple current account and put his share in there, and from there set up a, say, monthly automatic transfer/standing order/whatever into his Metro Bank account? Or maybe we open a savings account for this and do the same?

Any suggestions of banks to do this?

I should mention that I am unemployed and on JSA (since last April when I left my full-time job to care for my mum full-time), and my sister works part-time. We both have DMPs set up for our own creditors so have terrible credit histories - I'm worried that this will affect our ability to open a decent savings account for my brother's money. It's a really tough time for us all at the moment so I need all the help I can get.

Please help! Any advice or suggestions really appreciated.

Thanks so much

xylophone

You might need to create a vulnerable person discretionary trust - see a solicitor?

http://www.pickupandscott.co.uk/vulnerable_person.php

Once the trust is set up, you should be able to open a bank account in the name of X and Y, Trustees of the ABC Will Trust.

Simply keeping the money in a bank account might not be the best use of the money - you might wish to use some investments to create an ongoing income which can be used for the benefit of your brother.

10pence

Mentioned some stuff here: LINK

10pence wrote: »

Many of these questions you'll need to raise with whoever is setting up the trust.

Just some of the issues you've raise:

It's cheque not check -- before the grammar police turn up

Benefit capitals rules simply put are: for means-tested benefits anything between £6000-16000 will reduce it and above £16000 stop them.
Rules regarding income are slightly more complicated and it's obvious you are seeking ways of it not impacting your benefits; as you need to consider deprivation of capital and notional capital rules.
Won't help you commit benefit fraud, but basically, any monies paid into your account can be classed as income for benefit calculations and need declaring.
The relevant benefit agencies have a right at any time to check on all your bank/savings accounts your name is attached to. At anytime they can consider you weren't eligible for benefits based on info provided leading to benefit overpayments. Keep all agencies up dated on all changes of circumstances, especially now as most will be recorded in realtime.

Just be aware as soon as the money leaves the executors account into your own or family members it becomes theirs.

Are you or anyone else an appointee for brother's benefits? If so you will need to be aware of the benefit capital rules and report all changes of circumstances so no overpayments occur. If not and appointee might be an idea to be one or better yet power of attorney.

rosiedoon

xylophone wrote: »

You might need to create a vulnerable person discretionary trust - see a solicitor?

Once the trust is set up, you should be able to open a bank account in the name of X and Y, Trustees of the ABC Will Trust.

Simply keeping the money in a bank account might not be the best use of the money - you might wish to use some investments to create an ongoing income which can be used for the benefit of your brother.

Blimey this will be ore complicated than we'd thought. Thanks so much for the advice