Solicitor is asking for IFA details to set up Vulnerable Beneficiary Trust

Up_against_it

I'm tasked with setting up a Vulnerable Beneficiary Trust for my older brother according to my late father's will. My older brother is in a care home because of his mental health.

Our solicitor has said she cannot proceed until both Executors have appointed an IFA in relation to the trust. I'm not sure why this is needed as both Executors (who will also become Trustees in relation to the trust) are willing to administer the trust to their best ability while considering the needs of the Beneficiary.

Administration of my father's estate has been costly so far and I don't want to incur further expense if an IFA is not a legal requirement.

I'd be grateful for any opinions or advice regarding this matter.

Keep_pedalling

I don’t think it is a legal obligation, but your solicitor is probably trying to cover their backside in making sure the trust is properly managed. Do either of you have experience in handling a large sum of money for the benefit of someone else? Frankly I would look at engaging an IFA to advise on the best options to make sure this is going to provide financial support for life. IFAs also have access to financial products that the general public don’t have, such as long-term care annuities. This does not mean you have to use the IFA on a continuing basis once the trust is up and running.

Marcon

Up_against_it said:

I'm tasked with setting up a Vulnerable Beneficiary Trust for my older brother according to my late father's will. My older brother is in a care home because of his mental health.

Our solicitor has said she cannot proceed until both Executors have appointed an IFA in relation to the trust. I'm not sure why this is needed as both Executors (who will also become Trustees in relation to the trust) are willing to administer the trust to their best ability while considering the needs of the Beneficiary.

Administration of my father's estate has been costly so far and I don't want to incur further expense if an IFA is not a legal requirement.

I'd be grateful for any opinions or advice regarding this matter.

I'm sure that's true - but an honest willingness is nowhere near the same thing as an informed ability to do so. Unless you have specialist financial planning/investment skills and knowledge, it's unlikely that you will be able to do the best possible job for your brother, who is clearly in no position to help himself. You can't just stick the lot on a deposit account with what looks like an OK interest rate and hope for the best - this is his future your father was providing for.

Newly_retired

My mother's will provided for a Vulnerable Person's Trust for my sister. An IFA was used to set up the Trust Fund, though they are no longer engaged in its ongoing running. The funds have done extremely well over the years, generating far more than is needed each year, so I would say it was money well spent. The Trustees ( who will ultimately benefit once the VP dies) are well able to manage any ongoing admin.

gm0

Immediate needs annuity - if this is a relevant product to relatives age and health and costs and assets - it would filter the selection of IFAs you should go near.  A specialised area of practice. 

No doubt you and your sibling could do this trust + fund care support from it by yourselves - *if* you have the time and desire to research it sufficiently and form and execute your own long term plan for it. 
Covering the issues with one or both trustees becoming incapacitated. Your control.  Your mistakes (if any). 

The solicitor is making a genuine helpgful suggestion and also wants to lay off any risk of comeback of their own if you do muck it up.  And they had not done so.

Professional help with setup may speed things along - unless a particular version of how this is intended to work has already come to you pre-formed from your father. Which would (right or wrong) make the IFA interaction a bit stilted - as they may push alternatives that you are less receptive to as they don't align to your understanding of your dad's "plan"