Trust funds

lovesavingmoney

A family member passed away and has left money for my children to go into a trust for when they are older. I am to be one of the trustees. I received paperwork yesterday from the solicitors working on behalf of the executors. They are relinquishing trustee to myself and another person, as not involved in my children's lives at all.

The paperwork says though that I must set up a trust account for the money to be released into. Having a quick look at it it seems really expensive (some say over £1000 to set up). I have 4 children, and do not have a spare £4000. Surely the executors should be setting up the trust funds, and covering the cost from the estate???

xylophone

https://www.gov.uk/trusts-taxes/types-of-trust


Have the bequests "indefeasibly vested" in the children?

Ask the solicitor.

http://www.prescient-financial.com/docs/Bare%20trust%20returns.pdf

If so, you will hold the money in "bare trust" for each child.

https://www.taxinsider.co.uk/763-The_Bare_Essentials_Bare_Trusts.html

Post 8 here may be worth a look.

https://forums.moneysavingexpert.com/discussion/5994498/where-to-invest-inheritance-my-kids-have-been-left

jaybeetoo

Do you need to set up 4 trusts? Can you set up one trust fund and pay the 4 children from it once they reach the required age?

I feel for you. People put things in their will without thinking it through. My father (now deceased) wanted to set up a trust for my children on his death. I managed to persuade him it would only introduce complexity and expense which would mean the children would get less money. He put in his will that the children should receive money when they reached 21 but didn't specify a trust. As executor of his will, that made it so much easier for me to follow his wishes.

Reaper

It depends on the terms specified in the will and in particular what age counts as adult, but if a JISA and/or a Bare Trust are suitable they are both usually free to set up.

Malthusian

jaybeetoo wrote: »

Do you need to set up 4 trusts? Can you set up one trust fund and pay the 4 children from it once they reach the required age?

That may be a bad idea if, for example, bequests have been left to each child separately. Lumping it together would make it difficult to keep track of each child's share.

Costs should be met from the trust fund but on the face of it there is no reason to think that costs should be excessive (per Reaper). If it was a particularly complex trust it is unlikely the solicitors would have relinquished to the OP.