Trust money to bank.

Numbersup

Hi My grandchild has a bare trust containing SMT . They will be 18 in a few months. Im trustee. Ive already been selling and removing some of it over the last few years into their cash isa . No room in the isas for this year now, but I sold about a10k part of t of SMT last Fri as I felt suddenly uneasy it would drop a lot not least because of all Spacex shares becoming available on top of frail economy , with little time to recover so just reducing a bit more from the risk . So , no isa space but I need somewhere for it to go for the time being . Its no longer part of the trust I believe, but I am confident it wont be accessed by my grandchild and Kent reliance appear to have a suitable savings account to tide over the last few months . Does this sound admissible

kempiejon

We, generally should think carefully before suddenly selling on feelings, I have some SMT if you mean Scottish Mortgage Investment Trust, I'm looking forward to some more value unwrapping over the next months, near doubled in 3 years and up 30% this year.
You said Kent Reliance is that a cash building society account? A different prospect to an investment trust. Not sure I have a useful pointer as I'd prefer SMT unless I needed to buy something soon.

Numbersup

Yes it is. Money will be needed to be available for further education before too long , so cant wait it out if SMT takes a dive. I too like SMT , grandchild has held it since 2012 so its seen a couple of knocks but has bounced back, just felt I needed to de-risk a bit more for them. Time will tell I guess .Hadnt thought about how difficult it might be to find somewhere to put it for a few months now isa not available.

masonic

I think the decision to derisk is entirely rational. The money may be needed in the short term. Young adults tend to focus their attention on getting a foot on the property ladder and in any case may not have the risk appetite once gaining control of the money.

What I don't know about is the ramifications of taking the money out of the trust, but there are others who frequent the forum who will be very knowledgeable about what is acceptable in these circumstances.

xylophone

Do you mean that the money is being held in cash within the stocks and shares account?

If it is only for a few months, you could use the cash to open eg this account

https://www.skipton.co.uk/savings/childrens-savings-accounts/childrens-saver

to pass to your grandson at age 18?

Numbersup

Yes it is . Thank you xylophone that suggestion is I think even better than the Kent Reliance as Ill be able to get nearer a branch for grandchild to take physical id's that probably required. Not sure how I missed that one , I thought Id had a reasonable trawl for ones that didnt have too low a ceiling for the purpose.

jimjames

https://forums.moneysavingexpert.com/discussion/comment/82128967#Comment_82128967

Seems a very sensible idea. I'm going through a similar de-risking process but at the other end of the scale, adjusting my father's portfolio to suit someone in mid 80s after a few decades of good growth. I do hold SMT myself but have the same concerns as you re SpaceX being such a significant part of their holdings.

kermchem

The OP reports that last Friday he sold £10k of his grandson’s shares in Scottish Mortgage held in a dealing account in a bare trust. When were the shares bought, or rather at what price, and what is the capital gain? There may be CGT to pay.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82131297#Comment_82131297

Well the OP has been selling for a few years and transferring the money to an ISA. So presumably they have a handle on any CGT from previous years' experience.

Numbersup

Yes, there is a relatively small amount to pay , got that in hand thanks.

Numbersup

Well, that went well—Im clearly really good at sensing a significant drop in the offing —NOT!!! Sold £10k's worth at beginning of month at 1461 convinced the ai 'slow down' announcements would put the boot in at least temporarily, and it took off the next morning , just look at it today. Ah well, there'll be a few % on it from the bank to offset and still some left in to ride the wave (or storm).