Trust fund asvice

LeeLoader

Hello....I'm.after advise on trust funds. My 15 year boy had one set up by his grandad 6 or 7 years ago, one that he cant touch till hes 18.
He had, up till recently £10k in there, however he got quite a large inheritance from his grand parents,  £140k.
I naively put it all in the one Trust fund complete forgetting about the £85k limit of cover from the government.
Am I correct is saying I can get some transfered out to another Trust Fund?
And if so which one would be best?

Keep_pedalling

Are we talking about it being held in cash? If not what sort of fund have you used?

xylophone

Do you mean that there is a bank or building society account that is held in bare trust for your son?  You are the Trustee?

His  grandfather (who has recently died) originally gave your son  £10,000 which was deposited in this account?

He has now inherited £140,000 from his grandfather's estate and this sum too has been deposited in the Trust account?

If this is the case, then it is likely that it would be protected for up to  six months as below.

https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

Does your son have a CTF/JISA?

If a CTF and no deposit has been made in the CTF year, you could make the maximum deposit, transfer to JISA, make the maximum deposit to JISA for the current tax year and for the tax year beginning April 6.

Otherwise, the Skipton Building Society offers an account which can be held in bare Trust up to the age of 18.

https://www.skipton.co.uk/savings/childrens/childrens-trust-saver

You could transfer at least £80,000 to that account.

LeeLoader

Exactly that.....no he only has the Trust Fund and his own Nationwide account.

Skipton sounds like a good solution and was sort of what I was looking for.

Thank you 😊 

LeeLoader

Although looking on that link the max you can deposit is £50,000 🤔

LHW99

What bank is the Trust fund at? Although the £85k limit is important, I'm not sure I would worry toomuch if its one of the major UK banks like Barclays, Lloyds etc. The Government is unlikely to allow them to go bust.

bompey

Just out interest what is it invested in?

xylophone

Although looking on that link the max you can deposit is £50,000

Thanks - I had missed that.

Still, £50,000 in that account, at least £18000 in the JISA leaves £82,000 in the original account - money can be moved from it to JISA in subsequent years as desired.

LeeLoader

It's the 18 Club with Harpenden Building  Society, so he can't access it till he's 18

xylophone

The account was  offered as a Fixed Term, variable rate account which could not be accessed until the child beneficiary reached the age of 18 but could accept deposits up to the age of 18?

You added the £140,000 bequest to this account, which already held a gift of £10,000 (and interest accruing presumably). 

If the  terms and conditions of the account do not permit access under any circumstances (except presumably the saddest) until the beneficiary reaches the age of 18, then that is it and all about it?

The funds must stay in this account for the next three years.