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Trust

edited 30 November -1 at 1:00AM in Savings & Investments
8 replies 823 views
steinsonsteinson Forumite
34 posts
edited 30 November -1 at 1:00AM in Savings & Investments
Can anyone help I’m so confused I had a trust drawn up by a solicitor one part is discretionary for my disabled daughter the solicitor who set up the trust said to get a trust account then get independent financial advice as how to invest it. The bank where the trust account is has said to invest it I’ll have to take it out of the trust and loose the trust protection I’m confused whose right and who can recommend what to do with the money if I take it out of the trust it seemed like a waste of time and money setting up a trust and if so does anyone know who I can complain too as I wasn’t told about this.

Replies

  • dunstonhdunstonh Forumite
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    The bank where the trust account is has said to invest it I’ll have to take it out of the trust and loose the trust protection

    This would be a missale from the bank. However, most banks have pulled out of giving advice and now offer a guided process which is only available to retail consumers. Not trusts. Its would almost certainly be classed as a missale by the bank if proceeded with.

    Banks are not IFAs. The solicitor told you to see an IFA.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • steinsonsteinson Forumite
    34 posts
    steinson wrote: »
    Can anyone help I’m so confused I had a trust drawn up by a solicitor one part is discretionary for my disabled daughter the solicitor who set up the trust said to get a trust account then get independent financial advice as how to invest it. The bank where the trust account is has said to invest it I’ll have to take it out of the trust and loose the trust protection I’m confused whose right and who can recommend what to do with the money if I take it out of the trust it seemed like a waste of time and money setting up a trust and if so does anyone know who I can complain too as I wasn’t told about this.
    The bank only opened the account however they didn’t check my understanding of the rules governing a trust it was the solicitor who said about a trust but he never mentioned this he said I had to get independent advice, I don’t know what to do now as i was thinking after all the hassle of setting up a trust of just keeping it and leaving the money and not investing it do you know how I’d know if the account made interest thanks
  • DrSynDrSyn Forumite
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    This strikes me as a specialist area of investment, where you do need to see an IFA, rather than asking for recommendations on this site.

    Who is correct the solicitor or the bank? I would expect the solicitor to know more about trust law and give you the correct information than a bank.

    Get that bank to put in writing what they have told you, if they decline to do so, that must tell you something.

    Why don't you go back to the solicitor and repeat there, what the bank has told you and see what the solicitor says? After all you have already paid for that advice. You will only be checking the advice they have given you was correct.
  • xylophonexylophone Forumite
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    The bank where the trust account

    Remember to check the rules relating to the taxation of the type of Trust that has been created.

    https://www.gov.uk/trusts-taxes/trusts-and-income-tax

    You have set up a Trust, let's call it XYZ Trust and you are the sole Trustee?

    You have opened a Bank Account in the name of the Trust.
    As Trustee, you are the signatory on the account.

    A certain amount of money is now held in the XYZ Trust Bank account.


    As Trustee of the Trust, you wish to invest that money so you consult an Independent Financial Adviser.

    https://adviserbook.co.uk/ When the menu comes up tick "confirmed independent" and such other specialisms as required.

    Let's say he recommends that you open an investment account in the name of the Trust with one of the investment platforms and advises you how to invest the cash.

    Having opened the investment account, you then transfer cash from the Trust Bank Account to the Trust Investment Account and give instructions for the purchase of the recommended investments.

    Let's say that all the funds pay dividend/interest.

    You instruct the investment platform to pay this income to the Trust Bank Account.

    As Trustee you can now make payments from the Trust Bank Account to the beneficiaries of the Trust.
  • dunstonhdunstonh Forumite
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    The bank only opened the account however they didn’t check my understanding of the rules governing a trust it was the solicitor who said about a trust but he never mentioned this he said I had to get independent advice, I don’t know what to do now as i was thinking after all the hassle of setting up a trust of just keeping it and leaving the money and not investing it do you know how I’d know if the account made interest thanks

    The bank is saying the wrong things. Bank staff are notoriously poor on trusts. They are notoriously bad on investments. And if you are speaking with an unregulated bank clerk who can only offer a guided investment service then you are not doing what the solicitor told you or intended. The solicitor told you to see an IFA. So, why are you not seeing an IFA?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Reed_RichardsReed_Richards Forumite
    615 posts
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    steinson wrote: »
    ...The bank where the trust account is has said to invest it I’ll have to take it out of the trust ....
    Are you sure the bank did not say that to invest you would have to take the money out of the trust account? As others have explained, that's not at all the same thing as taking it out of the trust.
    Reed
  • steinsonsteinson Forumite
    34 posts
    I have had no luck trying to get in touch with Barclays trust department to help me sort this out has anyone got any contact details or can anyone suggest who I can contact to help me sort it out.
  • AlbermarleAlbermarle Forumite
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    It has already been clearly suggested to either :
    1) Go back to the solicitor
    2) Pay for advice from an IFA who understands about trusts ( as you were advised to do in the first place )

    Suggest you reread the previous answers and get professional help
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