Bare Trust Fund

justybaby

Does anyone know if the FSCS compensates over the £85,000 limit for a bare trust fund? My partner is the only beneficiary but there are 3 Trustees.
The web searches aren’t very clear 

Keep_pedalling

No it doesn’t but as it seems like we are talking about an adult here why has he not taken control of his own money? 

xylophone

Might be a personal injury trust?

https://www.ellisonssolicitors.com/news/everything-you-need-to-know-about-personal-injury-trusts/


Or it could be that the beneficiary (although of age) prefers the Trustees to continue to administer his Trust.

Keep_pedalling

xylophone said:

Might be a personal injury trust?

https://www.ellisonssolicitors.com/news/everything-you-need-to-know-about-personal-injury-trusts/


Or it could be that the beneficiary (although of age) prefers the Trustees to continue to administer his Trust.

A personal injury trust is a different beast to a bare trust, and with a bare trust the beneficiary is responsible for any taxation that falls on the income so they really should take full control.

Sound more like an inheritance that they were not supposed to get until they are 21 or 25 and don’t realise they can wind the trust up any time they like  after their 18th birthday.

xylophone

No - a PI Trust can be a bare  trust.


https://www.lindsays.co.uk/news-and-insights/insights/what-do-you-need-to-know-about-personal-injury-trusts

HOW MANY TYPES OF PI TRUSTS ARE THERE? 

There are two common types of personal injury trusts and the most frequently used is a bare (or absolute) trust. A bare trust is transparent which means that the trust property, in every meaningful sense except for the purposes of means-testing, is treated as your own. The fund is taxed as if it is in your hands and, when you die, the property forms part of your estate and will be dealt with in terms of your Will.  A bare trust is usually administratively straightforward and is capable of being invalidated by you. However, it won’t provide protections from third party creditors or claimants on your personal estate.

Keep_pedalling

I still stand corrected!