Issues with family trust - investment

xylophone

Then inter vivos settlor interested discretionary trusts of the marital home which was owned as tenants in common?

Your parents were living in the property and then set up these trusts (when exactly?) whereby each of them gifted his/her beneficial interest into trust?

This meant that the property passed out of the direct ownership of your parents.

In each trust, the Trustees were the spouse and a professional? The trustees had the absolute discretion to direct that the asset could be used to benefit the settlor and/or a class of beneficiaries?

At some point you replaced your mother as trustee? The professional originally appointed has been replaced by a solicitor?

Your late father lived with mother in the property until he died (recently?) and then mother moved into rented accommodation?

You and the solicitor trustee (his firm doing the conveyancing?) have found a buyer for the property?

The solicitor's firm will receive the proceeds of sale but these must be transferred to an account in the name of the trustees.

The trustees have absolute discretion as to how the funds are used but the intention is that they should be invested to provide an income for your mother?

I think you would then need to look into registration of the trust and also into the income tax regime.

If the above is the case, then it seems to me (but I am no expert) that you may need to investigate the position regarding IHT on your father's estate. I say this on account of the fact that although he did not personally own any share in the property (and therefore could not bequeath it to your mother or anybody else), because he could potentially benefit from the trust, (and indeed did so benefit as he occupied it?), there may be Gift with Reservation of Benefit implications.

This would mean that the value of the gift would be counted when calculating any IHT due.

You might also need to investigate any CGT implications?

MistySky

https://forums.moneysavingexpert.com/discussion/comment/82139526#Comment_82139526

At this point I think to myself, how can I appoint someone else to take responsibility? I don’t mind being a Trustee but investment and tax is certainly not my area of expertise!

MistySky

https://forums.moneysavingexpert.com/discussion/comment/82139526#Comment_82139526

A bit more here… the professional trustee has a legal company but not a solicitor and not involved in the conveyancing. The previous professional wasn’t a solicitor either. The professional trustee could receive the funds but I feel uncomfortable about that because I have no control if there is a problem.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82139878#Comment_82139878

That is why they invented solicitors and accountants.

Has anyone suggested terminating the trust? Or do you plan to keep it going for as long as your mother needs the income?

xylophone

Was your late father a trustee of the trust he settled?

Or father, mother and a professional (since replaced by another) were trustees of both trusts?

You replaced mother as trustee before your father died?

Your father's death is recent and prompted your mother's removal into the rented property?

Is your mother paying for domiciliary support from her own funds?

Is a firm of solicitors handling the conveyancing?

If so, the proceeds of sale will be transferred to the firm's client account.

If the trust (s) arrangement is not to be terminated (and termination has its own fiscal implications), then

a current account in the names of you and the professional as Trustees of the (name) Discretionary

Trust should be opened to receive the funds. The professional may be able to arrange this through his

own bank.

You will both then need to consider the tax implications as outlined above and the registration of the trust.

It would be possible to open a stocks and shares account/ a deposit account for the Trust

Presumably income producing funds/shares would be chosen and the instruction given to remit the

income to the Trust current account.

It would then be the Trustees' responsibility to deal with tax and the distribution of the funds.

eskbanker

^ Might be worth cutting back on the indiscriminate use of bolding? It would normally be used for emphasis, but emphasising everything effectively emphasises nothing, and just reduces legibility IMHO…

MistySky

https://forums.moneysavingexpert.com/discussion/comment/82139899#Comment_82139899

So I need a solicitor and accountant. The other potential beneficiaries wouldn’t be happy if the trust were terminated. I might explore it a bit more though. Just not sure ot wouldn’t bring a massive legal headache.

Enzo_L

https://forums.moneysavingexpert.com/discussion/comment/82140102#Comment_82140102

Would "the other potential beneficiaries" be happy if you resigned as a trustee and they had to do it?

You need a solicitor who specialises in trusts and estates. Most high street solicitors do not, because it is a niche area of practice nowadays and generalists who do high street work don't come across this stuff often enough to make training in it financially viable for them.

If the specialist solicitor is able to deal with the tax element then all well and good, but you may well need an accountant with trust expertise too, and a specialist trusts and estates solicitor will know of several if necessary.

The fact that you have lacklustre professional trustees and other potential beneficiaries who wouldn't be happy doesn't justify you being left holding the baby.

You need proper professional, expert help, and if the other potential beneficiaries want to whinge about the cost then suggest that they take on the trusteeship themselves and see how they like it.

I'm not a trust expert and wouldn't tackle this stuff myself. I'd pay for an expert to do it properly. That's what's needed in your situation. Please stop torturing yourself by trying to do it yourself.

Yorkie1

Following on from Enzo_L's post, look for STEP accreditation (Society of Trust and Estate Practitioners). Both solicitors and accountants are members of this - it has extra training and they are specialists.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82140102#Comment_82140102

Well I don't know - the trust is going to become more active than it used to be (getting income and paying it out). So you are going to need accounts and tax returns and tax deduction certificates and all that stuff.

We don't know why the trusts were set up originally and whether they still have a purpose. Some posters on here will look at a trust and say it is not doing what you wanted it to and maybe is making things worse and so the best thing to do is get rid of it. Your scenario sounds as if it may be more complicated than usual. So you need some advice which you have been trying to get and it sounds like that is hard work.

I don't know what sort of solicitors you have been talking to but there is an organisation called STEP which gets mentioned on here. It is for professionals (accountants as well as solicitors and maybe others) who specialise in trusts and estate planning. You may be able to find a STEP member near you on here

Member search | STEP

But I appreciate we have strayed a long way from your original question about where to find a bank account so I should probably shut up now.