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Disabled Trust Fund
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Chrissy2k2
Posts: 7 Forumite


Help needed please!
My parents died last year and the estate is to be split 4 ways with my siblings this week..
My eldest brother is 65 and in residential care due to a brain injury. A discretionary trust has been created and I am a trustee. The solicitor has suggested I open a Trust account with Metro bank, however there’s a £150 charge, £5 monthly charge when account goes under 25k and it pays no interest 😳 which seems very unfair and I’m struggling to see the benefits of having this account?
My question is, would my brothers money be ring fenced from the Government regardless of what account it was in, or does it have to be a Trust account? Any help gratefully received, I’m finding it all very confusing and stressful
My parents died last year and the estate is to be split 4 ways with my siblings this week..
My eldest brother is 65 and in residential care due to a brain injury. A discretionary trust has been created and I am a trustee. The solicitor has suggested I open a Trust account with Metro bank, however there’s a £150 charge, £5 monthly charge when account goes under 25k and it pays no interest 😳 which seems very unfair and I’m struggling to see the benefits of having this account?
My question is, would my brothers money be ring fenced from the Government regardless of what account it was in, or does it have to be a Trust account? Any help gratefully received, I’m finding it all very confusing and stressful
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Comments
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Chrissy2k2 said:Help needed please!
My parents died last year and the estate is to be split 4 ways with my siblings this week..
My eldest brother is 65 and in residential care due to a brain injury. A discretionary trust has been created and I am a trustee. The solicitor has suggested I open a Trust account with Metro bank, however there’s a £150 charge, £5 monthly charge when account goes under 25k and it pays no interest 😳 which seems very unfair and I’m struggling to see the benefits of having this account?
My question is, would my brothers money be ring fenced from the Government regardless of what account it was in, or does it have to be a Trust account? Any help gratefully received, I’m finding it all very confusing and stressful
The Trust will only protect if formed as part of the will, if nothing in will about a Trust then money isn't protected for income related benefits such as Universal Credits.
Let's Be Careful Out There0 -
Unfortunately this is a problem with discretionary trusts in that there are few financial institutions that offer them and they don’t pay much (if any) interest.One possible option would be NS&I, they do pay interest and there are no fees.https://www.nsandi.com/files/asset/pdf/trust-faqs.pdf
Moving the money to a non trust account is not an option if this is to avoid him loosing means tested benefits.0 -
HillStreetBlues said:Chrissy2k2 said:Help needed please!
My parents died last year and the estate is to be split 4 ways with my siblings this week..
My eldest brother is 65 and in residential care due to a brain injury. A discretionary trust has been created and I am a trustee. The solicitor has suggested I open a Trust account with Metro bank, however there’s a £150 charge, £5 monthly charge when account goes under 25k and it pays no interest 😳 which seems very unfair and I’m struggling to see the benefits of having this account?
My question is, would my brothers money be ring fenced from the Government regardless of what account it was in, or does it have to be a Trust account? Any help gratefully received, I’m finding it all very confusing and stressful
The Trust will only protect if formed as part of the will, if nothing in will about a Trust then money isn't protected for income related benefits such as Universal Credits.1 -
Keep_pedalling said:Unfortunately this is a problem with discretionary trusts in that there are few financial institutions that offer them and they don’t pay much (if any) interest.One possible option would be NS&I, they do pay interest and there are no fees.https://www.nsandi.com/files/asset/pdf/trust-faqs.pdf
Moving the money to a non trust account is not an option if this is to avoid him loosing means tested benefits.
So if I was to set up an ISA for him, that wouldn’t protect the money from losing benefits? He’s on ESA, DLA and mobility part of PIP0 -
The money must remain the Trusts, and spending should be via that Trust. Depending how the Trust has been set up it can make investments but can't be put into personal savings such as an ISA.
Let's Be Careful Out There1 -
Monies in a Trust fund will not count towards £16k Savings limit when it comes to means tested benefits.
We paid £600 to a provider for an account but there were no monthly charges.1 -
My solicitor has advised I use Cater Allen as they are the only other bank offering trusts.1
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marcia_ said:My solicitor has advised I use Cater Allen as they are the only other bank offering trusts.1
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