Will trusts

Lindagreenacre

My husband and I are executors and trustees of the wills of both my parents. My father left money in trust for first my mother to have the interest in her lifetime and then my disabled sister in her lifetime. My mother has since died and again she has left money for my sister to receive the interest in her lifetime.
The solicitor said to just have the money in our names and see that my sister gets the interest. This is what we have been doing, but the rub is that the interest comes to well over the £1000 (approx £4000 p.a.) interest threshold for not paying tax. Also, my husband and I have interest on our own money. Originally, the money from my father was in a trust account at Northern Rock (now Virgin), but as their interest rate went down to next to nothing, they would not let me move it within Northern Rock and maintain trust status, plus nowhere else would let us have a trust account. We are making sure that my sister, who is in a care home is taken care of financially, but do not want a huge tax bill.

Keep_pedalling

That is totally wrong, this should be in a trustees account but as you have found finding somewhere to park trust money is not easy. I believe you can use NS&I to deposit trust money, but as we are talking about a 6 figure sum here you might be wise to consult a IFA about the best approach to take.

Margot123

You need to consult a financial adviser with regard to setting up a Trust account. A STEP solicitor may be able to recommend one who specialises in Trusts.