Trust creation via a Will

Ian25

My father died in November, and probate has now been confirmed..

His Will states that his money must be held in Trust for my mother to pay her an income for the rest of her life.

Has anyone had any success with Banks or Building Societies who operate such accounts, hopefully paying a competitive interest rate?

Thanks

dunstonh

Has anyone had any success with Banks or Building Societies who operate such accounts, hopefully paying a competitive interest rate?

using an account to pay income is quite high risk and not normally a sensible thing to do. Although if she is elderly or in poor health, it may be the right thing.

Does the Will state how much income? If not, there could be flexibility to utilise options that are more efficient than the usual trust based investing methods.

Heedtheadvice

You will need to approach individual banks and ask them. It seem to change frequently. There was another thread recently with a similar question perhaps search for it? Years ago there seemed to be lots of alternatives.
They mainly pay competetive rates, it's just that they are very poor rates!
As Dunstonh writes alternatives can be much better.....but you will need to create a will trust that conforms to your fathers wishes and it's interpretation and the trustee (you?) will be responsible for acting properly according to law and those wishes. The trustees hands might be tied as to options of what can be done with the money on behalf of your mother.


If the will's wording limits the possibilities for higher income, there possibly might be a better options for the estate to give your mother income that could be acted under a Deed of Variation , before or after Probate, but I think that might be too late if two years after death. If bank account interest (at say under 2%) leaves your mother short of income then it could be worth investigating. It requires the agreement of all affected beneficiaries.

xylophone

What exactly does the will say?

I ask this because it is slightly unusual for cash to be left to a spouse in this way.

Were there a property with an interest in possession trust, or investments to be held in trust with the income to your mother, or rental properties where she was to receive the rent, the situation would be more understandable.

Does the trust give powers of investment to the Trustees? Or is the case that the money is to be deposited in an interest bearing (if you can find one) trust account and she is to receive only the interest and not have access to the capital?

Does the will state that the capital is to go to other beneficiaries after your mother's death?