Cannot withdraw funds from Halifax PIP due to absent/unwell trustee

bronzeangel101

So thanks for the replies

What I haven't got in to is the fact my sister now has a major drug addiction problem and cut herself off from life and family in general. Her mental health is not in good shape and money is a dangerous topic to approach with her. Without getting into the fine detail here, it is not something I'm willing to do as it is going to cause problems.

I don't remember there being any lawyer present at the time of setting up the fund.

Will have to see how much it costs for the legal help.

Thank you

AnotherJoe

That makes the issue even more intractable unfortunately. The first step in any legal action will be contacting the sister.

AnotherJoe

P.s. looking for loophole here..... If this plan was in your sons name, did it not automatically become his when he became 18 ? What is the point of the trust .. what's it for? Why is it there ?
Is there a possible approach here whereby your son approaches the Halifax, says the trustees are uncooperative and as he is over 18 he insists they release his money now?

Malthusian

AnotherJoe wrote: »

P.s. looking for loophole here..... If this plan was in your sons name, did it not automatically become his when he became 18 ? What is the point of the trust .. what's it for? Why is it there ?
Is there a possible approach here whereby your son approaches the Halifax, says the trustees are uncooperative and as he is over 18 he insists they release his money now?

Depending on the terms of the trust the son may not have an automatic right to the capital. If the other beneficiary is still a minor and the trustees have discretion as to how much the beneficiaries receive and when, they may be stuck.

When the younger son turns 18, the two of them should be able to wind up the trust and have the capital distributed equally between them (assuming there are no other potential beneficiaries). However, this route may still require some legal assistance to enforce their rights if Halifax insist on making payment to the trustees.

(The OP refers to age 21. Any reference in the trust deed to age 21 is irrelevant if all the potential beneficiares are over 18 and of sound mind, and absolutely entitled to the trust money between them.)

Reed_Richards

bronzeangel101 wrote: »

I don't remember there being any lawyer present at the time of setting up the fund.

You seem to be a bit hazy about the distinction between the fund and the trust. The Fund is an investment that you bought on behalf of your son. The Trust is a set of rules about how the investment should be administered, laid out in a document called a deed. Unfortunately one of the rules is that you and your sister both need to sign-off any changes, such as a withdrawal of funds.

Maybe you should have a read of this to jog your memeory? https://www.moneyadviceservice.org.uk/en/articles/setting-up-a-trust

bronzeangel101

Malthusian wrote: »

Depending on the terms of the trust the son may not have an automatic right to the capital. If the other beneficiary is still a minor and the trustees have discretion as to how much the beneficiaries receive and when, they may be stuck.

When the younger son turns 18, the two of them should be able to wind up the trust and have the capital distributed equally between them (assuming there are no other potential beneficiaries). However, this route may still require some legal assistance to enforce their rights if Halifax insist on making payment to the trustees.

(The OP refers to age 21. Any reference in the trust deed to age 21 is irrelevant if all the potential beneficiares are over 18 and of sound mind, and absolutely entitled to the trust money between them.)

So the trust was taken out for both boys, the oldest one now is about to turn 21 and the other about to turn 16.

I am starting to think the best way forward maybe to wait a couple of years until the younger one turns 18 and go into the bank together to put our case. It's not something the advisor presented as an option but maybe a better approach given circumstances.

My sister, the trustee, is not entitled to any of it as the advisor claimed. That said, serious addictions can make people do bad things and/or make unreasonable demands. Communications with her over this is not something I see as a viable option right now.

AnotherJoe

Yes, you may need to go armed with a solicitors letter. Though I dont think you'll have any luck actually going into a branch, I suspect the staff there will not be aware of the rules surrounding this sort of area. A letter to the appropriate department from the sons (not you) requesting their money now they are 18.

Let your sister forget about it (or perhaps, hopefully, recover) over the next two years.

Malthusian

If the two boys are the only potential beneficiaries then that should work.

The other option we haven't really mentioned is to have the sister removed as a trustee on the grounds that she is unable to fulfil her duties. However, that is the legally complicated option which could take years that we are all trying to avoid.

If he could actually do with the money now, then hopefully you have funds in your own name that you could lend him for two years, given you had enough money to lock away capital in such a complicated arrangement 15 years ago...

AnotherJoe

Malthusian wrote: »

If the two boys are the only potential beneficiaries then that should work.

The other option we haven't really mentioned is to have the sister removed as a trustee on the grounds that she is unable to fulfil her duties. However, that is the legally complicated option which could take years that we are all trying to avoid.
And, it would involve contacting her, which of course is exactly what OP wants to avoid. Even if its just to prevent her remembering this trust and causing issues.


If he could actually do with the money now, then hopefully you have funds in your own name that you could lend him for two years, given you had enough money to lock away capital in such a complicated arrangement 15 years ago...

Good idea


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Reed_Richards

bronzeangel101 wrote: »

.... serious addictions can make people do bad things....

...which is why it's a very good thing that Halifax won't let one of the trustees withdraw the money on their own.