Will Life Interest In Possession Trust

DippySkippy

I am executor and unfortunately the Will has a clause setting up Property Life Interest Trust. The house was sold a few years ago when deceased moved into care home and never updated the Will. The Will includes a subclause saying that if the dwelling was sold then the net sale value should be substituted and held in Trust instead.

Can anyone please provide help/pointers about how/when the Trust is set up (I'm also a named Trustee). I can work out the net sale value - and I am assuming that once probate is sorted this money will be put into the new Trust. But as it will probably take over a year before the money can be distributed will the Trust be set up with the net sale value or does any kind of interest accumulate since death that needs to be included?

Thanks

Keep_pedalling

Is there enough left in the estate to cover the amount the sale made? 

Linton

DippySkippy said:

I am executor and unfortunately the Will has a clause setting up Property Life Interest Trust. The house was sold a few years ago when deceased moved into care home and never updated the Will. The Will includes a subclause saying that if the dwelling was sold then the net sale value should be substituted and held in Trust instead.

Can anyone please provide help/pointers about how/when the Trust is set up (I'm also a named Trustee). I can work out the net sale value - and I am assuming that once probate is sorted this money will be put into the new Trust. But as it will probably take over a year before the money can be distributed will the Trust be set up with the net sale value or does any kind of interest accumulate since death that needs to be included?

Thanks

The will specified what should happen to the house on death.  But as the house was sold before the death isnt the Trust clause invalidated since the deceased no longer owned it when the will came intro effect?

One possibly relevent question - who is the beneficiary of the trust?

Keep_pedalling

Linton said:

DippySkippy said:

I am executor and unfortunately the Will has a clause setting up Property Life Interest Trust. The house was sold a few years ago when deceased moved into care home and never updated the Will. The Will includes a subclause saying that if the dwelling was sold then the net sale value should be substituted and held in Trust instead.

Can anyone please provide help/pointers about how/when the Trust is set up (I'm also a named Trustee). I can work out the net sale value - and I am assuming that once probate is sorted this money will be put into the new Trust. But as it will probably take over a year before the money can be distributed will the Trust be set up with the net sale value or does any kind of interest accumulate since death that needs to be included?

Thanks

The will specified what should happen to the house on death.  But as the house was sold before the death isnt the Trust clause invalidated since the deceased no longer owned it when the will came intro effect?

One possibly relevent question - who is the beneficiary of the trust?

It would be useful to see the full wording relating to the trust (with any personal detailed redacted) to clarify whether that sub clause was applicable for a sale before death or as would be more common, post death.

It may be necessary to take professional advice on this.  

Linton

Keep_pedalling said:

Linton said:

DippySkippy said:

I am executor and unfortunately the Will has a clause setting up Property Life Interest Trust. The house was sold a few years ago when deceased moved into care home and never updated the Will. The Will includes a subclause saying that if the dwelling was sold then the net sale value should be substituted and held in Trust instead.

Can anyone please provide help/pointers about how/when the Trust is set up (I'm also a named Trustee). I can work out the net sale value - and I am assuming that once probate is sorted this money will be put into the new Trust. But as it will probably take over a year before the money can be distributed will the Trust be set up with the net sale value or does any kind of interest accumulate since death that needs to be included?

Thanks

The will specified what should happen to the house on death.  But as the house was sold before the death isnt the Trust clause invalidated since the deceased no longer owned it when the will came intro effect?

One possibly relevent question - who is the beneficiary of the trust?

It would be useful to see the full wording relating to the trust (with any personal detailed redacted) to clarify whether that sub clause was applicable for a sale before death or as would be more common, post death.

It may be necessary to take professional advice on this.  

Yes also re my question on the beneficiary.. Usually the trust is to enable a surviving spouse to continue to live in the family home.  If the house was sold presumably there is no surviving spouse.  Was the deceased actually the beneficiary of someone else's Trust? 

More clarity and info required.

poseidon1

I concur with the others, you have provided virtually no information to work with.
So specific questions are as follows:

1) is the  person who died the testator of the Will where  you are now executor, and their date of death?
2) who was the named beneficiary or beneficiaries of the trust established by the Will?
3) the person who died, were they survived by a spouse or other living relative?
4) What were the expressed terms of the property trust?
5) Who is supposed to benefit from the rest of the estate under the terms of the Will?
6) Are you being advised by a solicitor on the administration of the estate and trust, or are you attempting to handle both on a DIY basis?

DippySkippy

Keep_pedalling said:

Is there enough left in the estate to cover the amount the sale made? 

Yes, and to cover the IHT

DippySkippy

poseidon1 said:

I concur with the others, you have provided virtually no information to work with.
So specific questions are as follows:

1) is the  person who died the testator of the Will where  you are now executor, and their date of death?
2) who was the named beneficiary or beneficiaries of the trust established by the Will?
3) the person who died, were they survived by a spouse or other living relative?
4) What were the expressed terms of the property trust?
5) Who is supposed to benefit from the rest of the estate under the terms of the Will?
6) Are you being advised by a solicitor on the administration of the estate and trust, or are you attempting to handle both on a DIY basis?

Sorry, here goes:

1) Yes, am executor, DOD recently
2) Named beneficiary 'B' - common law partner & not a dependant (has own house & income). Remainderman is child of testator
3) No spouse, has child
4) No decent OCR to read Will - but basically there is clause setting up Trust which states that as the house has been sold then the net proceeds free of tax (annoying) go into the Trust - so as I understand B gets income and when they die the Trust passes absolutely to R (and gets wound up). The Will includes reference to the Standard STEP provisions.
5) Residuary estate is spit 80/20 between R and B
6) Currently DIY (as solicitor wants circa £25k) - the estate is actually very simple - just cash accounts and share cert. It's just the Trust that's the hassle and I would look at professional advice - ideally get a deed of variance to remove it.

My current thoughts are that:

1) Trust comes into effect on death (and the Will is the Trust Deed)
2) But cash doesn't get allocated until after administration and there will be NO interest uplift.

Am I correct in also thinking that once the Trust beneficiary dies the Trust is considered part of their estate and that the Trustees must pay the IHT for the value of the Trust and there is no IHT nil band allowance. So in effect the child has been stuffed - they pay the IHT on Trust value on testator death and then lose IHT on the Trust again before they inherit that component!

I was recently told by an ex QC that Trusts are a vehicle for Banks and Solicitors to make lots of money!

Am also wondering if worth contesting Will as I doubt full implications were explained - they want their child to inherit their estate whilst ensuring partner was 'no worse off'.

Thanks everyone  

poseidon1

DippySkippy said:

poseidon1 said:

I concur with the others, you have provided virtually no information to work with.
So specific questions are as follows:

1) is the  person who died the testator of the Will where  you are now executor, and their date of death?
2) who was the named beneficiary or beneficiaries of the trust established by the Will?
3) the person who died, were they survived by a spouse or other living relative?
4) What were the expressed terms of the property trust?
5) Who is supposed to benefit from the rest of the estate under the terms of the Will?
6) Are you being advised by a solicitor on the administration of the estate and trust, or are you attempting to handle both on a DIY basis?

Sorry, here goes:

1) Yes, am executor, DOD recently
2) Named beneficiary 'B' - common law partner & not a dependant (has own house & income). Remainderman is child of testator
3) No spouse, has child
4) No decent OCR to read Will - but basically there is clause setting up Trust which states that as the house has been sold then the net proceeds free of tax (annoying) go into the Trust - so as I understand B gets income and when they die the Trust passes absolutely to R (and gets wound up). The Will includes reference to the Standard STEP provisions.
5) Residuary estate is spit 80/20 between R and B
6) Currently DIY (as solicitor wants circa £25k) - the estate is actually very simple - just cash accounts and share cert. It's just the Trust that's the hassle and I would look at professional advice - ideally get a deed of variance to remove it.

My current thoughts are that:

1) Trust comes into effect on death (and the Will is the Trust Deed)
2) But cash doesn't get allocated until after administration and there will be NO interest uplift.

Am I correct in also thinking that once the Trust beneficiary dies the Trust is considered part of their estate and that the Trustees must pay the IHT for the value of the Trust and there is no IHT nil band allowance. So in effect the child has been stuffed - they pay the IHT on Trust value on testator death and then lose IHT on the Trust again before they inherit that component!

I was recently told by an ex QC that Trusts are a vehicle for Banks and Solicitors to make lots of money!

Am also wondering if worth contesting Will as I doubt full implications were explained - they want their child to inherit their estate whilst ensuring partner was 'no worse off'.

Thanks everyone  

This is much clearer!

Evidently, the deceased by choosing not to marry the trust beneficiary has created a situation where there is a double whammy re IHT.
The 1st unavoidable liability on his death ( no spouse exemption to shelter the trust fund) , and potentially a 2nd liability on the the trust beneficiary's death depending on the size of her personal estate when she dies. However, the trust fund will be entitled to a proportional share of the trust beneficiary's personal nil rate band when she dies, so this arrangement will be disadvantageous to the beneficiaries of her estate in due course.

Moving forward, you are correct the trust fund comes into exsistence on tbe date of death. The value of the fund should have been property sale proceeds you traced, less a share of the IHT attributable to those cash proceeds.  However you intimate that the Will provides for those proceeds to pass to the trust tax free, with the remaining estate unfortunately having to bear the full burden.

This suggests ( in theory ), that there is no need for any delay in you segregating the trust monies from the estate in readiness for the trust to commence since none of the trust monies can be allocated to estate taxes or expenses.

However, due to the iniquitous outcome of all of this on the child of the deceased, you are contemplating the possibility of a deed of variation to terminate the trust.

On this point, the only aspects that I see  could be used as bargaining counters are firstly the trust fund will use up part of the trust beneficiary's nil rate band on her death and secondly she maybe prepared to settle for a lump sum capital amount in exchange for the net income stream from the trust for the rest of her life. In this regard, and depending on her age, the gross income yield ( before tax ) for these types of trusts is around 3.5% to 4%, to balance the income expectations of the lifetime beneficiary  against the capital growth expectations of the remainderman child.

You have not mentioned the amount of the trust fund, but pursuing an amicable agreement with the lifetime beneficiary to vary the will to wind up the trust for a lump sum seems the most sensible approach. Legally contesting the will in its entirety ( with costs having to be met from the remaining estate if unsuccessful)  cannot be recommended, this tends to be a course of action where only lawyers are the winners.

I understand you have already dispensed with the original lawyer, but if you do go down the route of trying to agree a variance of the will, the beneficiary's willingness to do so will be necessary. Since this is unfamiliar terrain for you, you will need legal advice from a STEP qualified lawyer to structure the benefits of a termination of the trust from the beneficiary's point of. This may bring into play an actuarial calculation of the discounted capital value of the trust income stream having regard to the beneficiary's life expectancy in view of her age and state of health.

There is also the advantage of her being able to deploy  a capital sum in whatever way she chooses (isa investment, gifts to her own beneficiaries etc), compared to an income stream liable to income tax at basic rate in the trustees' hands with the potential for her to face higher rate tax thereon depending on her own personal income. 

Sadly if you are ultimately stuck with a continuing trust going forward it is an onerous undertaking.

You will need the services of a specialist investment adviser familiar with the competing demands of a life interest trust ( this likely disqualifies most IFAs) , together with a STEP qualified accountant to handle the annual trust income tax return and preparation of the annual trust accounts  a copy of which would need to be distributed to the beneficiary each year. These are not tasks I would reccomend anyone attempt  on a DIY basis, so clearly this would gives rise to annual trust administration costs to the detriment of the trust income and capital.

As you know, you have just 2 years post death to settle a deed of variation, after which you are stuck with the continuing trust with all its complications. Therefore 1st course of action is to seek out a STEP qualified lawyer to present the basis of a deal to the life interest beneficiary. The beneficiary may no doubt wish to consult her own lawyer to consider the pros and cons, so the sooner you start the negotiation process, the better.

Hope this helps.

DippySkippy

posedonidon1 said:

DippySkippy said:

poseidon1 said:

I concur with the others, you have provided virtually no information to work with.
So specific questions are as follows:

1) is the  person who died the testator of the Will where  you are now executor, and their date of death?
2) who was the named beneficiary or beneficiaries of the trust established by the Will?
3) the person who died, were they survived by a spouse or other living relative?
4) What were the expressed terms of the property trust?
5) Who is supposed to benefit from the rest of the estate under the terms of the Will?
6) Are you being advised by a solicitor on the administration of the estate and trust, or are you attempting to handle both on a DIY basis?

Sorry, here goes:

1) Yes, am executor, DOD recently
2) Named beneficiary 'B' - common law partner & not a dependant (has own house & income). Remainderman is child of testator
3) No spouse, has child
4) No decent OCR to read Will - but basically there is clause setting up Trust which states that as the house has been sold then the net proceeds free of tax (annoying) go into the Trust - so as I understand B gets income and when they die the Trust passes absolutely to R (and gets wound up). The Will includes reference to the Standard STEP provisions.
5) Residuary estate is spit 80/20 between R and B
6) Currently DIY (as solicitor wants circa £25k) - the estate is actually very simple - just cash accounts and share cert. It's just the Trust that's the hassle and I would look at professional advice - ideally get a deed of variance to remove it.

My current thoughts are that:

1) Trust comes into effect on death (and the Will is the Trust Deed)
2) But cash doesn't get allocated until after administration and there will be NO interest uplift.

Am I correct in also thinking that once the Trust beneficiary dies the Trust is considered part of their estate and that the Trustees must pay the IHT for the value of the Trust and there is no IHT nil band allowance. So in effect the child has been stuffed - they pay the IHT on Trust value on testator death and then lose IHT on the Trust again before they inherit that component!

I was recently told by an ex QC that Trusts are a vehicle for Banks and Solicitors to make lots of money!

Am also wondering if worth contesting Will as I doubt full implications were explained - they want their child to inherit their estate whilst ensuring partner was 'no worse off'.

Thanks everyone  

This is much clearer!

Evidently, the deceased by choosing not to marry the trust beneficiary has created a situation where there is a double whammy re IHT.
The 1st unavoidable liability on his death ( no spouse exemption to shelter the trust fund) , and potentially a 2nd liability on the the trust beneficiary's death depending on the size of her personal estate when she dies. However, the trust fund will be entitled to a proportional share of the trust beneficiary's personal nil rate band when she dies, so this arrangement will be disadvantageous to the beneficiaries of her estate in due course.

Moving forward, you are correct the trust fund comes into exsistence on tbe date of death. The value of the fund should have been property sale proceeds you traced, less a share of the IHT attributable to those cash proceeds.  However you intimate that the Will provides for those proceeds to pass to the trust tax free, with the remaining estate unfortunately having to bear the full burden.

This suggests ( in theory ), that there is no need for any delay in you segregating the trust monies from the estate in readiness for the trust to commence since none of the trust monies can be allocated to estate taxes or expenses.

However, due to the iniquitous outcome of all of this on the child of the deceased, you are contemplating the possibility of a deed of variation to terminate the trust.

On this point, the only aspects that I see  could be used as bargaining counters are firstly the trust fund will use up part of the trust beneficiary's nil rate band on her death and secondly she maybe prepared to settle for a lump sum capital amount in exchange for the net income stream from the trust for the rest of her life. In this regard, and depending on her age, the gross income yield ( before tax ) for these types of trusts is around 3.5% to 4%, to balance the income expectations of the lifetime beneficiary  against the capital growth expectations of the remainderman child.

You have not mentioned the amount of the trust fund, but pursuing an amicable agreement with the lifetime beneficiary to vary the will to wind up the trust for a lump sum seems the most sensible approach. Legally contesting the will in its entirety ( with costs having to be met from the remaining estate if unsuccessful)  cannot be recommended, this tends to be a course of action where only lawyers are the winners.

I understand you have already dispensed with the original lawyer, but if you do go down the route of trying to agree a variance of the will, the beneficiary's willingness to do so will be necessary. Since this is unfamiliar terrain for you, you will need legal advice from a STEP qualified lawyer to structure the benefits of a termination of the trust from the beneficiary's point of. This may bring into play an actuarial calculation of the discounted capital value of the trust income stream having regard to the beneficiary's life expectancy in view of her age and state of health.

There is also the advantage of her being able to deploy  a capital sum in whatever way she chooses (isa investment, gifts to her own beneficiaries etc), compared to an income stream liable to income tax at basic rate in the trustees' hands with the potential for her to face higher rate tax thereon depending on her own personal income. 

Sadly if you are ultimately stuck with a continuing trust going forward it is an onerous undertaking.

You will need the services of a specialist investment adviser familiar with the competing demands of a life interest trust ( this likely disqualifies most IFAs) , together with a STEP qualified accountant to handle the annual trust income tax return and preparation of the annual trust accounts  a copy of which would need to be distributed to the beneficiary each year. These are not tasks I would reccomend anyone attempt  on a DIY basis, so clearly this would gives rise to annual trust administration costs to the detriment of the trust income and capital.

As you know, you have just 2 years post death to settle a deed of variation, after which you are stuck with the continuing trust with all its complications. Therefore 1st course of action is to seek out a STEP qualified lawyer to present the basis of a deal to the life interest beneficiary. The beneficiary may no doubt wish to consult her own lawyer to consider the pros and cons, so the sooner you start the negotiation process, the better.

Hope this helps.

Thank you v much @poseidon1 v useful, sounds like you are a pro

1) Regards allocating the trust money immediately - I dont see how this can be done as the various accounts are frozen until after probate. I estimate £450k was net value, so am assuming £450k is allocated after probate - any any notion of accrued interest between death and then is ignored.

2) You suggest the Trust will yield 3.5-4% income. This seem high to me - my understanding is that the Trustees must maintain a balance between income and the capital, there are also Trust mgmt fees (1%?) and other expenses so I'd expect an income yield of more like 1.5-2% which is then treated as beneficiaries taxable income.

3) I hadnt grasped that the Trust is entitled to proportional share of IHT nil band. Do have a link to the relevant HMRC info (I think I will have to cite official sources in any discussions)

4) Have already had discussions about removing Trust - unfortunately the beneficiary has unrealistic expectations and he does not want to settle for a reasonable amount of the estate. He may have been badly advised.

poseidon1

DippySkippy said:

posedonidon1 said:

DippySkippy said:

poseidon1 said:

I concur with the others, you have provided virtually no information to work with.
So specific questions are as follows:

1) is the  person who died the testator of the Will where  you are now executor, and their date of death?
2) who was the named beneficiary or beneficiaries of the trust established by the Will?
3) the person who died, were they survived by a spouse or other living relative?
4) What were the expressed terms of the property trust?
5) Who is supposed to benefit from the rest of the estate under the terms of the Will?
6) Are you being advised by a solicitor on the administration of the estate and trust, or are you attempting to handle both on a DIY basis?

Sorry, here goes:

1) Yes, am executor, DOD recently
2) Named beneficiary 'B' - common law partner & not a dependant (has own house & income). Remainderman is child of testator
3) No spouse, has child
4) No decent OCR to read Will - but basically there is clause setting up Trust which states that as the house has been sold then the net proceeds free of tax (annoying) go into the Trust - so as I understand B gets income and when they die the Trust passes absolutely to R (and gets wound up). The Will includes reference to the Standard STEP provisions.
5) Residuary estate is spit 80/20 between R and B
6) Currently DIY (as solicitor wants circa £25k) - the estate is actually very simple - just cash accounts and share cert. It's just the Trust that's the hassle and I would look at professional advice - ideally get a deed of variance to remove it.

My current thoughts are that:

1) Trust comes into effect on death (and the Will is the Trust Deed)
2) But cash doesn't get allocated until after administration and there will be NO interest uplift.

Am I correct in also thinking that once the Trust beneficiary dies the Trust is considered part of their estate and that the Trustees must pay the IHT for the value of the Trust and there is no IHT nil band allowance. So in effect the child has been stuffed - they pay the IHT on Trust value on testator death and then lose IHT on the Trust again before they inherit that component!

I was recently told by an ex QC that Trusts are a vehicle for Banks and Solicitors to make lots of money!

Am also wondering if worth contesting Will as I doubt full implications were explained - they want their child to inherit their estate whilst ensuring partner was 'no worse off'.

Thanks everyone  

This is much clearer!

Evidently, the deceased by choosing not to marry the trust beneficiary has created a situation where there is a double whammy re IHT.
The 1st unavoidable liability on his death ( no spouse exemption to shelter the trust fund) , and potentially a 2nd liability on the the trust beneficiary's death depending on the size of her personal estate when she dies. However, the trust fund will be entitled to a proportional share of the trust beneficiary's personal nil rate band when she dies, so this arrangement will be disadvantageous to the beneficiaries of her estate in due course.

Moving forward, you are correct the trust fund comes into exsistence on tbe date of death. The value of the fund should have been property sale proceeds you traced, less a share of the IHT attributable to those cash proceeds.  However you intimate that the Will provides for those proceeds to pass to the trust tax free, with the remaining estate unfortunately having to bear the full burden.

This suggests ( in theory ), that there is no need for any delay in you segregating the trust monies from the estate in readiness for the trust to commence since none of the trust monies can be allocated to estate taxes or expenses.

However, due to the iniquitous outcome of all of this on the child of the deceased, you are contemplating the possibility of a deed of variation to terminate the trust.

On this point, the only aspects that I see  could be used as bargaining counters are firstly the trust fund will use up part of the trust beneficiary's nil rate band on her death and secondly she maybe prepared to settle for a lump sum capital amount in exchange for the net income stream from the trust for the rest of her life. In this regard, and depending on her age, the gross income yield ( before tax ) for these types of trusts is around 3.5% to 4%, to balance the income expectations of the lifetime beneficiary  against the capital growth expectations of the remainderman child.

You have not mentioned the amount of the trust fund, but pursuing an amicable agreement with the lifetime beneficiary to vary the will to wind up the trust for a lump sum seems the most sensible approach. Legally contesting the will in its entirety ( with costs having to be met from the remaining estate if unsuccessful)  cannot be recommended, this tends to be a course of action where only lawyers are the winners.

I understand you have already dispensed with the original lawyer, but if you do go down the route of trying to agree a variance of the will, the beneficiary's willingness to do so will be necessary. Since this is unfamiliar terrain for you, you will need legal advice from a STEP qualified lawyer to structure the benefits of a termination of the trust from the beneficiary's point of. This may bring into play an actuarial calculation of the discounted capital value of the trust income stream having regard to the beneficiary's life expectancy in view of her age and state of health.

There is also the advantage of her being able to deploy  a capital sum in whatever way she chooses (isa investment, gifts to her own beneficiaries etc), compared to an income stream liable to income tax at basic rate in the trustees' hands with the potential for her to face higher rate tax thereon depending on her own personal income. 

Sadly if you are ultimately stuck with a continuing trust going forward it is an onerous undertaking.

You will need the services of a specialist investment adviser familiar with the competing demands of a life interest trust ( this likely disqualifies most IFAs) , together with a STEP qualified accountant to handle the annual trust income tax return and preparation of the annual trust accounts  a copy of which would need to be distributed to the beneficiary each year. These are not tasks I would reccomend anyone attempt  on a DIY basis, so clearly this would gives rise to annual trust administration costs to the detriment of the trust income and capital.

As you know, you have just 2 years post death to settle a deed of variation, after which you are stuck with the continuing trust with all its complications. Therefore 1st course of action is to seek out a STEP qualified lawyer to present the basis of a deal to the life interest beneficiary. The beneficiary may no doubt wish to consult her own lawyer to consider the pros and cons, so the sooner you start the negotiation process, the better.

Hope this helps.

Thank you v much @poseidon1 v useful, sounds like you are a pro

1) Regards allocating the trust money immediately - I dont see how this can be done as the various accounts are frozen until after probate. I estimate £450k was net value, so am assuming £450k is allocated after probate - any any notion of accrued interest between death and then is ignored.

2) You suggest the Trust will yield 3.5-4% income. This seem high to me - my understanding is that the Trustees must maintain a balance between income and the capital, there are also Trust mgmt fees (1%?) and other expenses so I'd expect an income yield of more like 1.5-2% which is then treated as beneficiaries taxable income.

3) I hadnt grasped that the Trust is entitled to proportional share of IHT nil band. Do have a link to the relevant HMRC info (I think I will have to cite official sources in any discussions)

4) Have already had discussions about removing Trust - unfortunately the beneficiary has unrealistic expectations and he does not want to settle for a reasonable amount of the estate. He may have been badly advised.

I note you have broached the subject of breaking the trust in exchange for a capital sum and apparently this has been rebuffed by the life tenant which is a shame.

As regards the IHT treatment of an IPDI trust ( which is what this is ) you will see from the HMRC link example that the the trust fund is amalgamated with the deceased personal estate on death, the nil rate band apportioned between the two with the trust and estate then taxed separately. 

 https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm31034


As regard investment matters, trustees are required by virtue of  The Trustee Investment Act 2000 to bestow on the investment manager a detailed investment policy statement  (IPS) which operates as a 'roadmap ' and guidance to the investment manager in  outlining what is expected of them in assisting trustees in discharging their duties with regard to trust investment matters. Standard Life have produced an excellent form for this purpose per link below. Also see below Farrer's guide on this matter. Farrers are solicitors to the Royal family.

https://www.standardlife.co.uk/library/iht18.pdf

https://www.farrer.co.uk/news-and-insights/trustees-duties-and-powers-when-making-investment-decisions/

As I previously indicated you will need detailled professional guidance to assist you in the administering the trust  you have been burdened with. A STEP qualified accountant should be able to provide this together with accounting and tax compliance services. 

However some points to bear in mind:

* Investment portfolio management fees are chargeable to trust capital not income

*  You will be professionally advised that unless the Will Trust document directs you to favour the interests of the beneficiary entitled to capital over that of the income beneficiary, your proposed gross income yield of between 1.5% to 2% is likely to be considered detrimental to the income beneficiary.  In this regard, I refer you to page 3 of the standard Life IPS document. If you select Option 1 this leaves the investment adviser to determine the income/capital growth balancing act.

* As to trust accountancy/ tax compliance fees, the accountant will reccomend the % split chargeable to the trust income and capital each year. Trust income is distributable after deduction of income fees.

* its not clear to me whether you are now sole trustee of the trust. If so this is far from ideal. If you were to die with no co- trustee in place, your trusteeship would devolve by law on the executors of your personal estate. I am sure they would be less than happy with that additional burden. Give some thought to an additional trustee.

You have a steep learning curve ahead of you. A suitably qualified professional will be invaluable to ensure you discharge your trustee obligations appropriately.