Trustees for family protection trust

Yorkie1

I really wasn't sure if another board would be more appropriate for this query; please do say so if it should be moved.

Brief history: Mum and Dad set up Family Protection Trusts. Mum's was brought to an end a couple of years ago; Dad's was left running (he passed away nearly 10 years ago). We're not revising those decisions.

The original trustees for Dad's FPT were Dad and two named solicitors from the solicitor's firm.

Wind forward, and the solicitors' firm had been taken over and one of the solicitors was no longer practising. The new firm advised that it would be more straightforward (i.e. avoid individual issues such as we'd encountered) if the firm's Trust Corporation became the sole trustee. All paperwork was done. This did (subsequently) raise some issues with getting building insurance, as firms won't add a corporation as a policy holder (and don't understand the concept of noting an interest separately).

The firm is now suggesting that some trustee actions don't necessarily need to be done by professional trustees, which would involve a cost, e.g. if investments need to be withdrawn, that is easy enough for individuals to do. They have suggested that we go through the trustee change process again, for which there would be an initial up front cost, to make the trustees e.g. myself and my brother, with possibly my mother. (Although if my mother was a trustee, and subsequently lost capacity, we'd have to go to court to have her removed as a trustee ... she is 83). Brother lives in Europe but that apparently wouldn't be a legal barrier.

Has anyone any comments about pros and cons of the suggestion. What duties might we be taking on if we were to accept the trusteeship? Liabilities? Tax? (Obviously, we could still instruct this or another firm to do anything on an ad hoc basis.) Nervous about taking on something I don't really understand.

Thanks if you've got to the end of this!

Marcon

I've asked for this to be moved to https://forums.moneysavingexpert.com/categories/deaths-funerals-probate

Yorkie1

Thanks Marcon

Keep_pedalling

All I can say is that these sort trusts can be really a total pain to manage and I would not do so without taking professional advice from a STEP qualified solicitor. Are the current trustees STEP solicitors? 

Yorkie1

Thanks for replying, K_P.

I can't see reference to STEP on the firm's website, but I do find the firm on the STEP website with 5 practitioners listed. Although the STEP website is out of date, because one of the solicitors who dealt with the file a couple of years ago is listed there - but left the firm a year or so ago, I understand.

Having paid a lot to this current firm to bring the file up to date when they took it over from the original firm, I'm slightly reluctant to go elsewhere for yet more advice (but would do so if necessary).

I think, given your initial comments and my reservations, that it may not be worth the challenge and cost of changing trustees yet again, even if it makes building insurance more straightforward!