Invest from a Trust Account

DAB01

I am a trustee for my late father' Will Trust that was created from his Will. Is it ok to withdraw from this account ( I am a trustee and have access) in a fixed 1 Year bond to grow the account for my mum who is a lifetime beneficiary along with my sisters. If I keep a record of the transactions is this ok or should I seek legal advice?

xylophone

https://forums.moneysavingexpert.com/discussion/comment/79534615/#Comment_79534615

Your other thread is above,

Is it the case that at the moment, the money is held in a current account in the names of the three Trustees of the eg John Brown Will Trust?

Or is it held in an account in the name of the executors (your two sisters) of your father's will?

Is it the case that the Trust creates a Life Income Beneficiary (your mother) with the remainder men yourself and your two sisters?

That is to say, your mother is the  sole beneficiary of the income (whether dividends or interest) arising from the investment/deposit of these funds?

She has no right to the capital and you and your sisters have no right to either capital or interest while your mother is alive?

If so, as far as I can see, the capital should be invested/deposited in an account/accounts in the name of the Trustees and any income transferred to an  account (s) in the sole name of your mother.

You have previously indicated that your two sisters are the Attorneys registered with the Court of Protection and that they manage these accounts on your mother's behalf and for her sole benefit.

https://www.gordonsols.co.uk/what-is-a-life-interest-trust/#:~:text=The assets in the Life Interest Trust are treated for,estate for inheritance tax purposes.

xylophone

See also

https://techzone.abrdn.com/public/iht-est-plan/Tech-guide-IIP-trust-taxation

DAB01

Thank you for your advice. Mum is a beneficiary of the Will Trust. The problem we are having is getting a Bank / Building Society that will accept money from the Trust to act as a savings vehicle. Someone said Skipton do this but they do not.

xylophone

You might try here

https://www.bathbuildingsociety.co.uk/business-accounts/accounts/trust-accounts/

Why consider a Trust account?

Suitable for savers who:

• Are Bare/Simple/Will Trusts, Life Interest Trusts, Family Discretionary Trusts, Accumulation & Maintenance Trusts and Charitable Trusts
• Want to manage the account online, by phone or in our Branches

DAB01

Good morning Xylophone,
Thank you for your insight in these matters.
I simply need to know now which Banks / Building Societies / Institutions allow you to invest from a trust account?
If you know of a postal account rather than on line as these are more likely given it be a TRUST ACCOUNT.

xylophone

If you know of a postal account

Have you checked out the Bath Building Society as in the link above?

And this link?

https://moneyfacts.co.uk/savings-accounts/guides/what-kind-of-account-is-a-trust-account/#:~:text=A trust account – otherwise known,a third party or beneficiary

DAB01

Tried BBS and no luck. Unfortunately the link does not advise either.

xylophone

Unfortunately the link does not advise either.

According to the link

Where can I 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.

• AIB
• Allied Irish Bank (GB)
• Barclays Bank
• Cambridge BS
• Close Brothers
• Cumberland BS
• Darlington BS
• Dudley BS
• Ecology BS
• Family Building Society
• Furness BS

• Habib Bank Zurich plc
• Hanley Economic BS
• Leek United BS
• Mansfield BS
• Market Harborough BS
• Metro Bank
• Moneycorp Bank
• Monmouthshire BS
• National Savings & Investments
• Penrith BS

• Principality BS
• Progressive BS
• Reliance Bank
• Saffron BS
• Sainsbury's Bank
• Santander
• Scottish BS
• Skipton BS
• Suffolk BS
• Union Bank of India (UK) Ltd
• Zenith Bank (UK) Ltd

It is possible that some have ceased to offer trust accounts - if what you want is to open a savings account in the name of the Trustees, then you have no option but to ring round and see what if anything is on offer.

Did BBS tell you that trust accounts are no longer offered?

It appears that NS&I still allow accounts to be held in Trust.

https://www.nsandi-adviser.com/trusts#:~:text=Your clients can hold certain,Savings Certificates

However, you might need an IFA.

Try here

https://adviserbook.co.uk/

Tick "confirmed independent" and such other specialisms required when the menu comes up.

Skipton_Building_Society_Representative

DAB01 said:

Thank you for your advice. Mum is a beneficiary of the Will Trust. The problem we are having is getting a Bank / Building Society that will accept money from the Trust to act as a savings vehicle. Someone said Skipton do this but they do not.

Hi there, we do offer savings accounts for Will Trusts at Skipton. Feel free to call our team for further information. 

DAB01

Good morning.
Just to confirm we have a Trust Account with Metro that was set up via the Will. We would like to know if we can invest some  money from the Trust account to Skipton to act as a savings vehicle. I trust this can be done as a postal account as on line accounts are mainly rejected.
Could you kindly send me the link that allow the above?
Much appreciated
David