Investing Discretionary Personal Injury Trust funds

Buckbeak75

Hi,

I'm wondering if anyone has experience of this. It's a relatively small award (30k). I have had the trust deed created by a solicitor and as far as I can tell I now need to set up a trustee bank account with either Monika or Metro Bank.

Neither pay interest on the account, which is essentially what I'm asking about. Where else would be a good place to then invest some or all of the funds to allow for growth?

I don't want it locked in long term as may need to access some of the funds. I was planning to purchase premuim bonds as that has worked very well for me in the past. Unfortunately, I don't think it's possible for a trust to purchase those.

Any other suggestions, or advice would be most gratefully received. I have zero experience of investments so would be looking for something relatively straightforward and low risk.

Many thanks in advance.

Keep_pedalling

Although PBs can’t be held in trust other NS&I products can be.

winkowinko

SJP can hold trust investments. Not that I'm recommending them in particular, just stating you can definitely invest trust money.

artyboy

https://forums.moneysavingexpert.com/discussion/comment/81939544#Comment_81939544

SJP?? Wash your mouth out young man/lady/other!!

Albermarle

You need to decide wether to :

INVEST - means taking a risk to hopefully get better returns. The risk reduces a lot if you hold investments long term ( 10 years) and you pick the right ones.

SAVE - means an account that is safe and pays interest. Can be instant access, or tied up for periods.

It is not clear from your post which one you are thinking about.

winkowinko

https://forums.moneysavingexpert.com/discussion/comment/81939636#Comment_81939636

🤣

I did mention that I wasn't recommending them

Buckbeak75

https://forums.moneysavingexpert.com/discussion/comment/81939737#Comment_81939737

I was thinking about either shorter term investment 1-5 years or savings (earning interest over zero interest in the trust bank account)

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81939818#Comment_81939818

Straightforward NSI guranteed income bonds. If you can tolerate a 1 year fixed period that currently pays 4%. However you still need a trustee cheque book current account both to make the investment, and to eventually receive the maturity proceeds. See application below

https://www.nsandi.com/files/asset/pdf/guaranteed-income-bonds-application-form-trustee.pdf

However, i would advise that £30,000 is a miniscule amount to be subject to the complexities and inconvenience of a formal Personal injury compensation trust. Are the preservation of means tested benefits on behalf of the trust beneficiary a consideration here?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81939818#Comment_81939818

The normal recommendation is that investments should be held for a minimum of 5 years, preferably >10 years. This is to ride out volatility in the markets. Unless you go for ultra safe investments, but in that case the return is only similar to cash savings anyway.

Buckbeak75

https://forums.moneysavingexpert.com/discussion/comment/81939938#Comment_81939938

Thank you, yes the trust was set up to preserve right to benefits as I am currently unable to work.

masonic

https://forums.moneysavingexpert.com/discussion/comment/81939987#Comment_81939987

There's potentially a case for them though, as a short-term money market fund might be preferable to "active cash" when the trust limits options. It would give something consistently around base rate, but would need to watch fees. With interest rates maybe rising over this year, it would be helpful to hold something that would track them upward with no effort. I don't know if there is a cheap provider who might fit the bill. Otherwise NS&I 1y isn't a bad option, if the OP trusts them not to lose track of the savings 😉