Will trust accounts

Legacy_user

Does anyone know where I can open a trust account. I've been left money in my father's will to be held in trust for my mother while she is alive but I can't find any information on any bank websites to say they offer this, only child trust accounts. Thanks.

kidmugsy

Any help?

http://boards.fool.co.uk/trust-savings-account-12587677.aspx?sort=whole


Or you could scroll down this forum looking for advice:
http://www.taxationweb.co.uk/forum/inheritance-tax-iht-trusts-amp-estates-capital-taxes-f8.html

Thirdly:
https://forums.moneysavingexpert.com/discussion/5043860

kidmugsy

Good grief, I omitted to point to this.
https://forums.moneysavingexpert.com/discussion/5248877

Lindagreenacre

andybrookes11 wrote: »

Does anyone know where I can open a trust account. I've been left money in my father's will to be held in trust for my mother while she is alive but I can't find any information on any bank websites to say they offer this, only child trust accounts. Thanks.

I have the same problem. My husband and I are executors for my father's will and money was left to be held in trust and for my mother to receive the interest. This was several years ago and the solicitor put it in an account with Northern Rock that was paying a good interest rate. The rate diminished to nearly zero and N R (now Virgin) would not let us move the money to another account with them and hold it in trust. In the end we just put it in a fixed rate bond in our names and saw that mum got the monthly interest. She has now died and the interest goes to my disabled sister. Mum has also left money to be held in trust and the interest to go to my sister in her lifetime. The solicitor knows that we are holding money in account and so morally we are doing everything right. Legally, I am not so sure and it also messes up our income tax as the interest is well above the £1,000 we are allowed per annum free of tax. The solicitor acknowledges that the banks are useless in this matter.:(

john2054

I was able to open a trust account, with the Yorkshire bank. You could try them?

xylophone

Very recently a poster mentioned that he had been able to open a trust account with Natwest.

You might also try HSBC.

https://www.business.hsbc.co.uk/1/2/business-banking/community-schools-and-colleges

Community Account (Current Account)
Current Account providing free banking1 for clubs, societies and charities with an annual turnover under £100,000. Also available for churches, executors and administrators and trustees.

Lindagreenacre

We asked at Natwest and they would let us open an account in trust but not pay any interest. Not a great deal of use. The idea is that my disabled sister would get a little help towards paying the care home fees.

Lindagreenacre

My husband and I are named as executors and trustees of my parents wills. We have money in our names from my father's estate, from which my disabled sister receives the interest and have just received a cheque from my mother's estate that we need to invest to also give my sister the interest during her lifetime. If we put it in an account in our names, how do we deal with the tax issue? I have been moved from pillar to post with HMRC and basically told that my husband and I have to pay the tax. Ok. Now, do we just deduct 20% each month from the interest paid before transferring it to my sister and keep the money aside for when the taxman comes knocking. I know that we are able to receive £1,000 interest per year before paying tax, but we are talking of a higher sum than that. We will certainly not be setting up any trusts for the beneficiaries of our wills as the aggravation it has caused is phenomenal. I gain nothing except lots of work and anxiety.

Lindagreenacre

I clicked on the link. That is for schools, colleges etc. and not for a will trust. I want somewhere to place money left my parents that they intended should give my disabled sister the interest during her lifetime.

xylophone

Money left in Trust needs to be held in the name of X and Y Trustees of the ABC Will Trust.

It appears that your disabled sister is the beneficiary of a life interest?

http://www.step.org/sites/default/files/Comms/leaflets/2015/why-make-a-trust-2015.pdf

There is a section in the link on "vulnerable persons".

You might try here for a deposit account held in Trust.

http://www.hodgebank.co.uk/commercial/deposits/deposits_pensions-trusts-partnerships.html

Or NS&I? https://www.nsandi.com/income-bonds

However, the rates on offer are below the rate of inflation.

If a large sum of money is involved, and assuming that the trust deed allows, it might be worth opening a will trust account with a platform.

It would then be possible to invest in eg equity income funds/distribution funds etc and pay the interest/dividends to your sister.

You need to be sure of the tax treatment of the Trust.

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

http://www.greenwoods.co.uk/knowledge-base/private-client/life-interest-trusts/

You might need to consult a STEP solicitor who would be able to recommend an accountant experienced in taxation of trusts.