Will Trust, Trustee Account, NS&I Growth Bond

poseidon1

confuseddottycom said:

@poseidon1 house value in trust is below IHT threshold - it was ~ £110K at time of death.
Will Trust has been in existence for 3 years.
I am just try to work out most appropriate option for the cash, as I need to move it from my deceased father's bank accounts & am completing a tax return for the first year, hence want to make it simple for future years

Going back to your original post, your NSI growth bond idea helps relieved your annual tax compliance burden. However the net income return after 45% tax is paltry.  £35k is not much to start with and inflation over the years will erode that steadily.

You did not comment on my suggestions regarding investing in non ( or minimal) income producing growth investments for the trust, not your thing?

 

DRS1

poseidon1 said:

confuseddottycom said:

@poseidon1 house value in trust is below IHT threshold - it was ~ £110K at time of death.
Will Trust has been in existence for 3 years.
I am just try to work out most appropriate option for the cash, as I need to move it from my deceased father's bank accounts & am completing a tax return for the first year, hence want to make it simple for future years

Going back to your original post, your NSI growth bond idea helps relieved your annual tax compliance burden. However the net income return after 45% tax is paltry.  £35k is not much to start with and inflation over the years will erode that steadily.

You did not comment on my suggestions regarding investing in non ( or minimal) income producing growth investments for the trust, not your thing?

 

Would I be wrong to think the cash is there for house related expenses and perhaps for the 10 year charge?  If it is in a Growth Bond it won't be available until the end of the term will it?

confuseddottycom

@poseidon1: I agree that NS&I Growth Bond is not offering a great return, but I anticipate needing to either wind up the trust or make loans from the trust in the next 5 years, so do not want to commit to longer terms investments

@DRS1: I am not expecting to use the cash for house related expenses & do not think that the 10 year charge is relevant, as house value is below IHT threshold