Personal Injury Trust

pampam

My brother had an accident 12 years ago. The compensation he was awarded was £200,000 It was  put into a trust fund. The fund is managed by a well known investment management company.
If my brother needs to withdraw any money from the fund he has to request it and we both have to sign  as I am a trustee.
My brother is now retired and does not claim any means tested benefits.
The company that manage the fund are charging an average of £400 a year to manage the fund. They supposedly invest the money but any increase in the value is taken up by their fees.

Our question is this. Could we just manage the fund ourselves without the company? £4000 a year seems a lot of money for nothing?

Any advice would be very much appreciated.

Albermarle

are charging an average of £400 a year to manage the fund.

Very cheap ! but presume it is a typo as you later say £4000 a year seems a lot of money for nothing?

It is not for nothing though is it? Firstly you need to clarify whether they are charging you 2 % for just managing the investments ( very expensive) or that 2% includes all charges for the investments themselves, and the investment platform being used. ( still quite expensive but not as bad)

Could we just manage the fund ourselves without the company?

I presume so but what do you know about investing large sums of money? Also even if you manage the money yourself there will still be charges for the investment platform and the investments themselves.

It is definitely worth investigating, but a lot depends on your confidence to manage the investments.