Account for life tenant for funds received from Will

Duke99MYD

Hi, I am trying in vain to find an account I can open as Executor for my father's estate where he left the estate to my mum for her lifetime  (ie she gets the interest on the money not the capital).   Mum is 90 and not very well so I would not look to be tying up money for any length of time.  The ultimate beneficiaries are adult grandchildren.  Can anyone point me in the right direction.  Thank you

Keep_pedalling

Most of the higher paying accounts aren’t available as trustee accounts, but I know that all the NS&I saving accounts can be opened as trustee accounts. If the value is over £85k this might be the best option. 

Yorkie1

Are you trying to open an executor's account in order to administer the estate funds (and then close up); or an account for your mum to receive the estate distribution (in which case you're not opening an account in the capacity of an executor presumably); or something else?

If appropriate, is a financial affairs PoA in force from your mum? If it's not, is she well enough to make one if that would help you assist her with her finances?

xylophone

The point is that your mother is not the owner of the money.

It is to be held in Trust (therefore there must be a Trustee) and the duty of the Trustee is to hold the capital  for the ultimate beneficiaries

while paying the income to the life beneficiary.

The trouble is that a Trust account is unlikely to pay very much interest.

There are tax implications

https://www.goodwills.net/life-interest-trust-tax-implications/

It might be an idea to consider investments as well as cash.

Particularly if there is a large sum of money involved, it would be advisable to take expert advice.

Even though the income beneficiary is very elderly and not in the best of health, it is perfectly possible that she may be with the family for

a number of years.

I knew a lady who at 90 had a number of medical problems (including atrial fibrillation) who lived past her 97th birthday.

poseidon1

Duke99MYD said:

Hi, I am trying in vain to find an account I can open as Executor for my father's estate where he left the estate to my mum for her lifetime  (ie she gets the interest on the money not the capital).   Mum is 90 and not very well so I would not look to be tying up money for any length of time.  The ultimate beneficiaries are adult grandchildren.  Can anyone point me in the right direction.  Thank you

I sense your rising sense of frustration. Mainstream banks and building societies have been abandoning the trust account sector for years now so  ( apart from private banks ) there are now only a very small handful who are prepared to put up with the regulatory hassle.

 To this end see links below to Metro Bank, Hampden & Co ( for amounts £250,000  and above), Cater Allen ( requires an introduction from a professional intermediary).

https://www.metrobankonline.co.uk/business/sector-services/products/trustee-banking/#:~:text=You can apply to open a Trust Fixed Term Savings,of at least £10,000

https://www.hampdenandco.com/other-services/banking-for-trusts

https://www.caterallen.co.uk/accounts/specialist-banking/solutions-for-trusts

Be warned there will likely be account opening fees and possibly monthly account fees. Also interest rates on savings will not be the best since people like you are a captive audience with not many  options.

xylophone

https://www.bathbuildingsociety.co.uk/business-accounts/accounts/trust-accounts/trust-account/

https://www.bucksbs.co.uk/savings/trusts/

https://www.harpendenbs.co.uk/savings/trust-accounts/

You might also try Skipton BS.

https://www.skipton.co.uk/contact-us

https://www.skipton.co.uk/financial-advice/registering-your-trust