Bare Trusts is special account needed?

mnbvcxz

Bare trusts held in Interactive Investor. Legacy accounts. They no longer properly support Bare Trusts. Account is closing.

They suggest just creating a separate investment account and putting the Bare Trust in that. It would not longer have the name of the Beneficiary on it, rather the Trustee's name.

Does anyone know if this is allowed? There are specially designed Bare Trust accounts but whether you can actually just use a regular account so long as the Trustee looks after the funds properly?

Wonder faintly if it might be tricky explaining to the tax man that this account belongs to the beneficiary's Capital gains allowance...

Thanks

Keep_pedalling

How old are the beneficiaries and how much are we talking about?

mnbvcxz

Beneficiary is under 18. Which is why the trust is ongoing.  Talking maybe £50,000

Long term I would look into an account designed for Bare Trusts with ajbell or someone. But would rather put that off as finding out how to transfer a bare trust between providers, not to mention complicated certified child identification stuff look tricky in itself. Don't know if Interactive Investors suggestion just to create an extra basic investment account and use that to hold the trust is right. It could be. The official Bare Trust accounts may be partly marketing and convenience.
Thanks

Keep_pedalling

Well that rules out a JISA. I know you can open a trust account with NS&I, not the best rates but if they are nearing their 18th birthday that migh5 not be to much h of an issue.

mnbvcxz

Yes, I think they already have their JISA throught their parents anyway. How to invest is not really the problem. It will just sit in a boring tracker in an investment account. Whether the trustee can just designate any account as the trust account or it has to be a special branded one, that is the question...

xylophone

I wonder would AJ Bell be prepared to help?

https://www.ajbell.co.uk/investing-for-children/dealing-accounts-for-children

Has the Trust been registered?

https://www.gov.uk/trusts-taxes/registering-a-trust

mnbvcxz

Thank you for the replies. Very reassuring. Sounds like I'm OK just to move the trust internally at Interactive Investor to a regular investment account for the moment.

Xray, yes AJ Bell was one of the ones I was looking at. They are rather cheaper in fees too. But they haven't gotten back to me yet and their Bare Trust sign up form is rather hard work.  Having to get certified id for a child may need a little time. So I think I will do it the easy way for now and then have a bit more time to work it out properly.

(Oh and yes its registered with the government service, surprisingly easy in the end and oddly uninterested in where or what the trust contained.)