Will Trust Investments

Gilbert16

I am a Trustee for my mother's Will Trust. The Trust states that my Dad is the sole beneficiary until his death and at that point, I and my two siblings inherit her estate. Up until a few months ago - Dad benefitted from living in the house. He has now had to move into a care home and I am selling the house. This means that Mum's half of the capital needs to be protected with the interest going to Dad. So far, the only accounts that I can find that enable this are with Metro Bank, Bath BS and Bucks BS. Has anyone found any other such accounts? And why are the interest rates so low - 0.2% - 1.5% - when these are significant sums?

Keep_pedalling

You can hold the money in NS&I income bonds, or guaranteed income bonds.


https://www.nsandi-adviser.com/our-products

poseidon1

The complexities of catering for the tiny market of trustees means none of the mainstream banks are interested, and the newer challenger banks have no incentive to develop worthwhile offerings for this market place.

You say the sums are significant ( means different things to different people - I am thinking £250k +), so depending on your father's remaining life expectancy there maybe a case for seeking formal investment advice to put together a portfolio of low risk investments to generate significantly higher income ( say 5٪ plus) using stockmarket securities such as Government gilts, and short dated corporate bonds. 

This does mean being introduced to a stockbrokering firm since IFAs are not authorised to advise on individual stocks and shares. Going down the stockbroker route could also open up the possibility of using their client account facilities to cater for your banking needs.

As an example see below a link to Killick & co, a full service wealth manager with trust expertise.  This is neither and endorsement or recommendation of this particular firm, but you could find it useful to have an exploratory chat with this type of specialist to see how they could assist with your trust now that it is in cash form and a decent income stream is required to meet care home fees.

Also bear in mind the trust should be registered with hmrc, and may now have income tax reporting obligations which did arise whilst the 'trust fund' was the family home.

poseidon1

Sorry overlooked the link:

https://killik.com/what-we-offer/?gad_source=1&gclid=CjwKCAjwoa2xBhACEiwA1sb1BJbXTTuu83Q7GFvZNxCnmeMUaFtQZF-HaCLYLXe3hiYdsr_yLyvjWBoCyz0QAvD_BwE

Gilbert16

Useful advice & insight from the responders - thank you!

Gilbert16

I've looked at the NS&I stuff. This is so useful as the 100% protection above £85k means that I don't have to open 3+ accounts across the few places that I had found. The interest rate is also so much better than Metro, Bath BS and Bucks BS. Thanks ever so - brilliant!
And thanks about the registration of the Trust - yes, another hurdle to jump.