Trustee accounts

DEH66

I'm the sole Trustee of a Will Trust and need to open a Trustee account until the beneficiary reaches age 25 (in 20 months time).   The money has been with NS&I in Guaranteed Growth Bonds until recently.  I've tried 25 different banks etc and only found 2 (Skipton Building Society and Barclays) which offer Trustee accounts at the moment. Due to FSCS security limits I need to find a third. Can anyone help please?

Bobziz

Cater Allen ?

Murphy_The_Cat

Bobziz said:

Cater Allen ?

Yes, caterallen definitely offer trustee bank accounts - I've just opened one.  The only downside being the being the paperork afterwards which is a bit onerous to complete.

xylophone

https://moneyfacts.co.uk/savings-accounts/guides/what-kind-of-account-is-a-trust-account/

Where can you open a trustee savings account?
The banks and building societies below all offer trustee savings accounts. You can use our savings accounts charts to find accounts from the providers below. You will need to check that the specific account you want to open accepts applications from trustees.

A long list follows but it is a case of checking the specific account.

From Bath Building Society

https://www.bathbuildingsociety.co.uk/media/transfer/doc/trust_account_booklet_v10_singlepages_may_18.pdf

DEH66

Bobziz said:

Cater Allen ?

Thank-you, I'll take a look. 

Keep_pedalling

Does the will stipulate it has to be held in a discretionary trust? Many wills have clause like this and most are unenforceable wishes with the beneficiary able to to claim their inheritance from the age of 18 (16 in Scotland) if that is the case here I would not bother with the hassle and hand the money over.

DEH66

Thank-you. No, there is nothing in the will about discretion. I've registered the Will Trust and it's definitely non-discretionary.  Apart from that the donor (my father) consulted me about the appropriate age for his grandchildren to inherit and I agreed with him - age 25, so I would carry out his wishes.  

Cater Allen are coming up trumps!

Keep_pedalling

DEH66 said:

Thank-you. No, there is nothing in the will about discretion. I've registered the Will Trust and it's definitely non-discretionary.  Apart from that the donor (my father) consulted me about the appropriate age for his grandchildren to inherit and I agreed with him - age 25, so I would carry out his wishes.  

Cater Allen are coming up trumps!

Whatever you do with it it needs to be instant access, if the beneficiary learns about their right to the money, you will need to hand it over.

You also need to be aware that in the case of a bare trust the taxation of income dips the responsibility of the beneficiary so don’t keep them in the dark about it.

xylophone

If this is a bare trust, that is to say that the bequest "indefeasibly vested" in the beneficiary, then he/she had a legal right to access and control from the age of 18.

 As far as I understand it, the terms of the will are  the key to the matter and as such what   may have been verbally agreed with your father or indeed your views on when the beneficiary may gain access are not material to the issue?

And in terms of taxation, if this is a bare trust, then any  interest, other income and gains are those of the beneficiary - at the age of 23/24 (?) he/she is responsible for making any necessary declaration to HMRC.

https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem1563
https://www.boltburdon.co.uk/yourlife/wealth-planning/trusts/bare-trust/#:~:text=The assets of a bare,their Self Assessment tax return.

DEH66

Thank you all. It isn’t a bare trust. Everything is being done legally, in accordance with the Will and HMRC requirements.