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Family trust

A trust has been set up by my dads solicitors as per my mum and dads wills. My dads house sale is going through and when sold , 50% will be invested in the trust and the other 50% in my dads bank account. My self and my sister are trustees and would like some advise on investing the funds aproximately £240000.

Comments

  • Exodi
    Exodi Posts: 4,907
    Ninth Anniversary 1,000 Posts Hung up my suit! Home Insurance Hacker!
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    edited 12 October at 3:48PM

    Sorry but what is the question exactly? Presumably you're not hoping to receive financial advice on how to invest nearly a quarter of a million pounds from strangers on the internet?

    You will want to reach out to a (ideally independent) financial advisor who will be best placed to understand the trusts objectives, offer financial advice and answer any questions.

    Know what you don't
  • EthicsGradient
    EthicsGradient Posts: 1,583
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    Who are the beneficiaries of the trust, and what will be good for them in the foreseeable future? Are you looking for regular income from it now (maximised?), or for it to build capital to be accessed at a later date?

  • Albermarle
    Albermarle Posts: 32,718
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    The first obvious question is why set up a trust, as they are generally a pain and expensive to run. There are time when they can be useful, but a lot of times the main beneficiary is the lawyer involved.

    Have you managed to find a bank account for the trust, that is usually the first hurdle?

    Also you say it was set up in your Mum and Dads wills- so which one has died?

  • xylophone
    xylophone Posts: 46,086
    Part of the Furniture 10,000 Posts Name Dropper
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    Do you mean that your parents each made a will leaving

    his/her assets to be divided half to a family trust and half to the surviving spouse?

    Your parents owned their home as tenants in common?

    Your mother has died and the home has now been sold?

    Your mother's assets (including her share of the property) amounted to £500,000?

    You are now seeking to open a Trust account (s) to receive half the

    funds?

    What kind of Trust is this and who are the beneficiaries?

    https://www.gov.uk/trusts-taxes/types-of-trust

  • Keep_pedalling
    Keep_pedalling Posts: 23,497
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    You need to give a lot more information. For starters was the trust actually created by your mother’s will on her death? If it was does it give your father the right to the income generated by the trust?

  • poseidon1
    poseidon1 Posts: 3,713
    1,000 Posts Third Anniversary Name Dropper
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    You are going to need to be far more precise with your question, ie:

    1. If trust created by your mother's will on her death, is your father the primary life interest beneficiary? Your reference to a single trust established under both parents wills makes no sense in this regard.
    2. Is £240 k the entirety of the trust fund or just 50% with the other 50% being your fathers personal monies?. Again your post lacks clarity on this point.
    3. Assuming the trust is for your father are we to suppose he is now in a care facility? If so, do you hold an LPA on his behalf and therefore responsible for investing his personal money as well as the trust ?

    As a general point assuming the solicitor has not provided you with any guidance and advice with regard to your trustee duties and the complexity of administering a trust liable to income tax, I suspect you have a steep learning curve ahead of you which transcends the question of where and how to invest the trust monies.

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