£30k from a trust to invest

roonaldez

My gran passed away last year and everything (house + some land + cash / shares) passed to my grandad, with my mum and uncle acting as trustees of the assets, including around £30k in cash, which will rise by £10k next year when some premium bonds are cashed. Any suggestions on how to invest the £30k safely whilst minimising tax? My mum is thinking about a bond. Can some of it go into an ISA if it's from a trust? Any ideas greatly would be greatly appreciated.

KeithEssex_2

roonaldez wrote: »

My gran passed away last year and everything (house + some land + cash / shares) passed to my grandad, with my mum and uncle acting as trustees of the assets, including around £30k in cash, which will rise by £10k next year when some premium bonds are cashed. Any suggestions on how to invest the £30k safely whilst minimising tax? My mum is thinking about a bond. Can some of it go into an ISA if it's from a trust? Any ideas greatly would be greatly appreciated.

Assuming that your grandad is currently in good health and needs some kind of income stream from the cash then you would probably be wise to split it between a monthly income bond (e.g. 2-3 years) and an easy access savers account for any significant items of expenditure. Maybe a 70/30 split ?

Chelsea Building Society offer 6.50% AER for a 2 year bond at present.

Personally I would avoid choosing the highest paying (overseas) accounts as these always come with more risk which may worry your grandad.

Just my personal view of course.

barak

A bit dangerous to make assumptions from your one line precis of your gran's will, but one point is that you can't put cash in a Trust into an ISA.

ISAs are for "Individuals", not Trustees.