Investing inheritance - discretionary trust

peterj1974

Hello

A few months ago, my father passed away, and we've recently obtained probate. His will established a discretionary trust for the funds in his estate, naming my mother, brother, and me as beneficiaries. We are considering investing the estate's funds but have some questions about the discretionary trust and potential restrictions on our investment options.

From my understanding, the discretionary trust was activated upon his death, serving as a formal mechanism for managing the investment of these funds. It was his desire for us to invest the funds so that my mother could benefit from the interest. My query is whether we have the autonomy to invest the funds as we see fit, or if we are required to invest them through a specific type of trust that needs to be created?

Thank you, PJ

Keep_pedalling

An immediate post-death interest trust (IPDIT) would have been a far better option here, discretionary trusts are a pain to manage and are subject to eye watering taxation rates. If the amount going into the trust exceeds £325k then IHT will also be an issue.

You should probably seek advice from an expert in trusts, and look to see if you can do a deed of variation to provide something more tax efficient than a DT.

Marcon

peterj1974 said:

Hello

A few months ago, my father passed away, and we've recently obtained probate. His will established a discretionary trust for the funds in his estate, naming my mother, brother, and me as beneficiaries. We are considering investing the estate's funds but have some questions about the discretionary trust and potential restrictions on our investment options.

From my understanding, the discretionary trust was activated upon his death, serving as a formal mechanism for managing the investment of these funds. It was his desire for us to invest the funds so that my mother could benefit from the interest. My query is whether we have the autonomy to invest the funds as we see fit, or if we are required to invest them through a specific type of trust that needs to be created?

Thank you, PJ

One for proper professional advice based on sight of the will and a full understanding of your circumstances, I'm afraid, rather than speculation here.