Investing in Trust Fund

saver92638

My late father created a Discretionary Trust in his will. The fund needs to be invested in the name of my sister and myself as Trustees. My solicitor has advised me that the Trust will attract income tax at 40%.

He advised me that if the Trustees invested in 'non-incoming producing assets' then we would avoid the higher rate of taxation on any income. He is unable to provide me with financial advice.

Can anyone suggest any 'non-incoming producing assets'. I don't want to consider anything risky like shares. There is about £100,000 to invest.

Thank you.

Aegis

saver92638 wrote: »

My late father created a Discretionary Trust in his will. The fund needs to be invested in the name of my sister and myself as Trustees. My solicitor has advised me that the Trust will attract income tax at 40%.

He advised me that if the Trustees invested in 'non-incoming producing assets' then we would avoid the higher rate of taxation on any income. He is unable to provide me with financial advice.

Can anyone suggest any 'non-incoming producing assets'. I don't want to consider anything risky like shares. There is about £100,000 to invest.

Thank you.

Off the top of my head, you could go for growth units in collective investments, which aim to provide capital growth and therefore do not distribute dividends...

I suppose you could also try looking into some tax efficient products, but I have no idea which of those you could invest in via a trust.

JDinho

Zero Dividend Preference shares would be ideal...

... The concept of Zeros is fine, although some years back the whole sector went pop and investors got burned. There are still some attractive Zeros around now and I suggest you research them further.

Another asset that might appeal could be structured products, although they aren't highly rated on these boards. Ignore the highstreet ones and look at those that investment professionals have access to.