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Disabled Trust Fund

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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 

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  • HillStreetBlues
    HillStreetBlues Posts: 6,053 Forumite
    1,000 Posts Third Anniversary Homepage Hero Photogenic
    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 
    AFAIK It needs to be in a Trust account, it's certainly an issue getting a Trust bank account these days.
    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 There
  • Keep_pedalling
    Keep_pedalling Posts: 20,768 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    edited 11 June at 7:02PM
    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.
  • Chrissy2k2
    Chrissy2k2 Posts: 7 Forumite
    Part of the Furniture Name Dropper First Post Photogenic
    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 
    AFAIK It needs to be in a Trust account, it's certainly an issue getting a Trust bank account these days.
    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.
    Thank you. Yes Metro seems to be the only provider. The disability trust has already been set up as part of the Will, 
  • Chrissy2k2
    Chrissy2k2 Posts: 7 Forumite
    Part of the Furniture Name Dropper First Post Photogenic
    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.
    Thank you, yes definitely seems to be a problem with them.
    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 PIP
  • HillStreetBlues
    HillStreetBlues Posts: 6,053 Forumite
    1,000 Posts Third Anniversary Homepage Hero Photogenic
    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 There
  • retiredbanker1
    retiredbanker1 Posts: 709 Forumite
    500 Posts Second Anniversary Name Dropper
    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.
  • marcia_
    marcia_ Posts: 3,404 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper
     My solicitor has advised I use Cater Allen as they are the only other bank offering trusts. 
  • northwalesd
    northwalesd Posts: 1,316 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 12 June at 12:53PM
    marcia_ said:
     My solicitor has advised I use Cater Allen as they are the only other bank offering trusts. 
    Yes, I'm a trustee for an personal injury trust account for my brother. The solicitor dealing with his accident offered Metro or Cater Allen as alternatives, but advised CAas the better option.
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