Discretinary Trust investment

weezie7

I am a new Trustee on a Discretionary Trust. There is £50k to invest, probably short term, as the Trust may well be wound up within a year or so, but not confirmed.


My question is - will 'normal' banks open a savings account for this? I seem to recall that not all banks will be interested in it. Any suggestions?


The idea would be to invest short term, but get some interest for the beneficiaries. The money is currently in a solicitors account, and I am still trying to find out how much interest it is earning there! Hence exploring better options for the potential beneficiaries.

xylophone

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

Be sure that you understand the taxation of a discretionary trust.

It is possible to set up a bank current account "A Jones and B Smith, Trustees of BFG Trust" - ask your bank. A trust in my family has had such an account with Barclays for a number of years.

It is also possible to set up investment based accounts for trusts and savings accounts for trusts.

Examples https://www.caterallen.co.uk/solutions-for-trusts

http://www.hl.co.uk/investment-services/fund-and-share-account/faqs

weezie7

Thanks xylophone, helpful to know at least one bank can do what we want!

One of Trustees is an accountant, so no issues with understanding the tax situation, I hope!