Investment in Discretionary Trusts

Dnomyard

I have experienc in investing in OEICs etc in bare trusts as executor of a will. Now long retired, I wish to sell some of my ISAs and invest about £250k (adding surplus taxed income to the ISA proceeds over a few years) in discretionary trust funds for my grand children. I could use an IFA, but it seems the only way they make money is by wrapping the investment in an insurance bond, which will not be cost-effective for the amount I have available. My solicitor to draw up the deeds, but Google has been unable to identify a platform provider who will deal with trustees (other than of a bare trust). I am not seeking recommendations, just some names of companies who would accept my money.

Brynsam

This isn't a pensions question, so you might fare better on the savings forum: https://forums.moneysavingexpert.com/categories/savings-investments

xylophone

https://www.hl.co.uk/help/fund-and-share-account/company-fund-and-share-account/trusts/can-i-open-an-account-in-the-name-of-a-trust

CAN I OPEN AN ACCOUNT IN THE NAME OF A TRUST?

Yes. To apply for an HL Fund and Share Account in the name of a trust, you would need to send us an application form via the post which can be requested from our Investment Helpdesk on 0117 900 9000.

We require the original or a certified copy of the Trust Document with the accompanying application form and, if not already in the Trust Document, a list of names and addresses of all authorised trustees and beneficiaries.

dunstonh

I could use an IFA, but it seems the only way they make money is by wrapping the investment in an insurance bond, which will not be cost-effective for the amount I have available.

Why is £250k not cost effective with an investment bond?

Dnomyard

Thank you for all comments. I was not sure which forum and will repost under "investments" .

Dunstonh, it is possible the trust will last 23 years, though some will be paid early. Total fees over, say, 18 years could be £50k, equal to my present expected IHT bill. But I did not say, as perhaps I should, that I am able to fund almoist half of the investment from surplus taxed income, rather than from capital, which renders an insurance bond unnecessary and therefore not cost-effective.

On a different subject, an acquaintance recently lost a lot of value in a "balanced" investment fund through a well known platform after a certain "Midas" they recommended speculated unexpectedly and unsuccessfully and then whizzed off when people wanted their money back, so there are some platforms I will avoid.