What is the Trustee of a Trust required to do ?

Linton

Murphy_The_Cat said:

Please be gentle with me and if possible explain things to me in Laymans Terms.

.......

Invest in a way thats deemed to be appropraite, say a Worldwide Tracker fund, as an Income fund, with any Income that is generated going to my Mum (or reinvested in the Tracker fund if she genuinely doesn't want it).

How are the relevant taxes paid across to HMRC ? Does the Fundhouse (say HL) provide a Tax Certificate which is then for me as a Trustee to pay from the Trust Funds or are charges taken from the Trust Fund automatically.

Is this something that I can do as a Sole Trustee, or do I need someone else/others to join me as Trustees ?

I would echo Dunstonh's implied concerns about the risk level of your proposed investment.  The point is that you are investing for Mum's and your sister's benefit as much as yours.  This will probably mean that the investment strategy should be significantly more cautious than one you would use yourself.

For example, you will have seen world trackers fall perhaps 25% in the recent covid crash.  If it was your pot, you may be perfectly happy with this knowing that things will recover by the time you would need the money. However Mum is different.  She has less time available to wait for a recovery and she may need a safe and steady ongoing income.  Also both her and your sister, who are perhaps less familiar with investing than you, could see a major fall in the value of the Trust as evidence that you were failing in your duties. We often see on these forums that families can be seriously split when money comes into the relationships.

If the pot is very large I would strongly suggest that you get professional advice on managing the investment.  An IFA with trust experience would be more appropriate for this than a solicitor and would protect you.

Murphy_The_Cat

xylophone said:

money matters don't really have any attraction for her !

Well.......

contribyution to datehas been confirming her bank details for the incoming wonga.

But (all being well) it'll be a long time coming?

She's a named benificiary of an Estate that I'm an Executor for and she's getting her incoming wonga from that.

Murphy_The_Cat

Linton said:

Murphy_The_Cat said:

Please be gentle with me and if possible explain things to me in Laymans Terms.

.......

Invest in a way thats deemed to be appropraite, say a Worldwide Tracker fund, as an Income fund, with any Income that is generated going to my Mum (or reinvested in the Tracker fund if she genuinely doesn't want it).

How are the relevant taxes paid across to HMRC ? Does the Fundhouse (say HL) provide a Tax Certificate which is then for me as a Trustee to pay from the Trust Funds or are charges taken from the Trust Fund automatically.

Is this something that I can do as a Sole Trustee, or do I need someone else/others to join me as Trustees ?

I would echo Dunstonh's implied concerns about the risk level of your proposed investment.  The point is that you are investing for Mum's and your sister's benefit as much as yours.  This will probably mean that the investment strategy should be significantly more cautious than one you would use yourself.

For example, you will have seen world trackers fall perhaps 25% in the recent covid crash.  If it was your pot, you may be perfectly happy with this knowing that things will recover by the time you would need the money. However Mum is different.  She has less time available to wait for a recovery and she may need a safe and steady ongoing income.  Also both her and your sister, who are perhaps less familiar with investing than you, could see a major fall in the value of the Trust as evidence that you were failing in your duties. We often see on these forums that families can be seriously split when money comes into the relationships.

If the pot is very large I would strongly suggest that you get professional advice on managing the investment.  An IFA with trust experience would be more appropriate for this than a solicitor and would protect you.

What would you consider to be "very large" for a Trust value ? 

xylophone

She's a named benificiary of an Estate that I'm an Executor for and she's getting her incoming wonga from that.

Perhaps  the local Cats' Home is to be her beneficiary.....

Linton

Murphy_The_Cat said:

Linton said:

Murphy_The_Cat said:

Please be gentle with me and if possible explain things to me in Laymans Terms.

.......

Invest in a way thats deemed to be appropraite, say a Worldwide Tracker fund, as an Income fund, with any Income that is generated going to my Mum (or reinvested in the Tracker fund if she genuinely doesn't want it).

How are the relevant taxes paid across to HMRC ? Does the Fundhouse (say HL) provide a Tax Certificate which is then for me as a Trustee to pay from the Trust Funds or are charges taken from the Trust Fund automatically.

Is this something that I can do as a Sole Trustee, or do I need someone else/others to join me as Trustees ?

I would echo Dunstonh's implied concerns about the risk level of your proposed investment.  The point is that you are investing for Mum's and your sister's benefit as much as yours.  This will probably mean that the investment strategy should be significantly more cautious than one you would use yourself.

For example, you will have seen world trackers fall perhaps 25% in the recent covid crash.  If it was your pot, you may be perfectly happy with this knowing that things will recover by the time you would need the money. However Mum is different.  She has less time available to wait for a recovery and she may need a safe and steady ongoing income.  Also both her and your sister, who are perhaps less familiar with investing than you, could see a major fall in the value of the Trust as evidence that you were failing in your duties. We often see on these forums that families can be seriously split when money comes into the relationships.

If the pot is very large I would strongly suggest that you get professional advice on managing the investment.  An IFA with trust experience would be more appropriate for this than a solicitor and would protect you.

What would you consider to be "very large" for a Trust value ? 

£100K+

Murphy_The_Cat

xylophone said:

She's a named benificiary of an Estate that I'm an Executor for and she's getting her incoming wonga from that.

Perhaps  the local Cats' Home is to be her beneficiary.....

Maybe !!!!!!
Money has never really been her "thing", as long as she has enough to do the things that she wants to do.

Murphy_The_Cat

A quick update - I visited an IFA and a Trust has been set up, with the money investes "appropriately".  The IFA has had his palm crossed with (a large amount of) Silver and now we just need to sit back and wait for the next review in 12/18/24 months time.

Hopefully, all will go well with the "appropraite" investments, but if it doesn't go as well as hoped, I'm off the hook.

Thrugelmir

Murphy_The_Cat said:

A quick update - I visited an IFA and a Trust has been set up, with the money investes "appropriately".  The IFA has had his palm crossed with (a large amount of) Silver and now we just need to sit back and wait for the next review in 12/18/24 months time.

Hopefully, all will go well with the "appropraite" investments, but if it doesn't go as well as hoped, I'm off the hook.

If you are a trustee then your responsibilities aren't absolved. 

Murphy_The_Cat

Thrugelmir said:

Murphy_The_Cat said:

A quick update - I visited an IFA and a Trust has been set up, with the money investes "appropriately".  The IFA has had his palm crossed with (a large amount of) Silver and now we just need to sit back and wait for the next review in 12/18/24 months time.

Hopefully, all will go well with the "appropraite" investments, but if it doesn't go as well as hoped, I'm off the hook.

If you are a trustee then your responsibilities aren't absolved. 

Oh bountiful joy and happiness !

The other Trustee is my Mum, so hopefully we don't both end up in the muck.