Managing a Will Trust

margid

As Trustees of a Will Trust where can we place the money - no one seems to want it! We aren't even protecting the capital from inflation at the moment and the income is 1/2 what it was. Suggestions welcome.

Superscrooge

I don't claim to be knowledgeable about trust accounts but I've just done a google search and the below links might help?



http://www.fairinvestment.co.uk/trustee_savings_accounts.aspx

https://www.nsandi-adviser.com/sites/nsandi-adviser/files/asset/forms/investment-account-application-form-trustees.pdf

Keep_pedalling

How much are we talking about? Are the beneficiaries minors?

xylophone

Is the money currently being held in an executor's account?

You should be able to open a bank current account in the names of X and Y, Trustees of the A N Other Will Trust.

This is unlikely to be interest bearing, so presumably you will be looking to set up deposit/ investment type accounts for the Trust.

Example

http://www.hl.co.uk/investment-services/fund-and-share-account/faqs
To apply for a Vantage Fund & Share Account in the name of a trust, you would need to send us an application form via the post which can be requested from our Investment Helpdesk on 0117 900 9000.

We require the original or a certified copy of the Trust Document with the accompanying application form and, if not already in the Trust Document, a list of names and addresses of all authorised trustees and beneficiaries

With regard to deposit type accounts, you would need to check whether the bank/BS would offer the particular account to a Trust.

You need to be sure of the type of trust and taxation treatment.

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

margid

Thanks for getting back to me with these ideas. I will follow up and reply individually. (it's taking me time to understand the workings of the forum!)

margid

Thanks Superscrooge. I'm having a problem with the links but will keep trying. As far as I recall NS&I will only accept Personal Trustees not Trusts.

margid

Thanks Xylophone. We've been doing this for 10 years and the Compliance issues have got harder so institutions don't tend to want the hassle. The Trustees do not want market linked funds; however, having trawled through the lists of regulated financial institutions I've now found 2 that will accept applications from Trustees so fingers crossed they will still be available when funds mature.

dunstonh

. The Trustees do not want market linked funds

Why?
The trustees have a legal responsibility to do what is best for the beneficiary. The use of cash deposits for a long term objective would not be considered to be in their best interests. Cash does not have investment risk but it does come with inflation risk and shortfall risk. Investments MAY have those but cash is virtually guaranteed to have those. So, you are potentially increasing the risks by having cash.

Again, this assumes longer term and not short term.