Trust Funds for inheritence discretionary and 'age' related advise wanted

Cazsurelythiscantbetaken

As executor of my late mothers will I have to set up a discretionary trust fund for my brother as his inheritence has to be managed by another person.  I also have to set up a trust account for my neice so that the money stays in place until she is 21.  Please could you advise whom in the UK provide these accounts at this time, which are the best options.  I have been at a loss trying to ascertain who provides these accounts and haven't stopped doing them. 

ripplyuk

Mencap have a trust company which might be suitable for your brother. Some law practices also have their own trust companies. Check with the larger, more expensive solicitors in your area. 

Marcon

Cazsurelythiscantbetaken said:

As executor of my late mothers will I have to set up a discretionary trust fund for my brother as his inheritence has to be managed by another person.  I also have to set up a trust account for my neice so that the money stays in place until she is 21.  Please could you advise whom in the UK provide these accounts at this time, which are the best options.  I have been at a loss trying to ascertain who provides these accounts and haven't stopped doing them. 

Depending on the exact wording of the will, that may not be possible. If the will hasn't actually provided the terms of the trust, it is likely to be something known as a 'bare' trust, to which your niece will be entitled when she reaches 18 (or 16 in Scotland).

Probably best to get professional advice from someone who has actually seen the will.

pjs493

Check the age situation. When my husband and I wrote mirror Wills a few years ago, we stipulated trusts until age 21 for our children and didn't think anything of it at the time. We chose that age because we thought they'd be a bit more mature at that age and less likely to spend it on rubbish than if they got it at 18.

However, following my husband's death last year, I wrote a new Will and the solicitor advised me against the trust being held until they were 21 because of the tax implications. I was advised to make it until they were 18.

Cazsurelythiscantbetaken

My mothers will was written just over a year ago and was solicitor lead.  It states to be put in trust until she's 21.  Like you, the thought was she would be old enough then not to waste the money.

Keep_pedalling

Cazsurelythiscantbetaken said:

My mother’s will was written just over a year ago and was solicitor lead.  It states to be put in trust until she's 21.  Like you, the thought was she would be old enough then not to waste the money.

What is the exact wording (redact any personal info) of that clause? These clauses are often no more than wishes, because holding in a discretionary is both a pain to manage and is subject to eye watering taxation, so they are rarely used.

Cazsurelythiscantbetaken

FYI Metro Bank provide will trusts and discretionary trusts.  As far as the discretionary trust went, this form of account included fees and the application process was complicated, As suggested looking at the wording of the will, it was written as if it was an expressed wish and stated that the trustees could do as they seen fit with the money to the betterment of the benificary.  Therefore they have since decided against the discretionary trust.  My necies will trust is still in the process of being opened!!!!  It would seem that they will only hold the funds until she is 18.  The specific requirements of the way documentation is certified has certainly caused delays.  I certainly will not be leaving any monies in my will with these stipulations and can say that my mother wasn't fully aware of the processes and fees involved.