Best Accounts for Trustees?

Scooterman

I and my brother and sister are trustees of my late father's estate, the income from which goes to my mother for life.
The admin was always handled by solicitors and stockbrokers but their charges practically halved the income.
We have now ordered the shares to be sold and the money is sitting in the Solicitor's client account awaiting our instructions as to where to send it.

The snag is that not many Building Societies will take money from a Trust, and if they do they pay a lousy Treasurer's or Corporate rate, far less than to an individual. Can't understand why as the funds, once deposited, will quite likely stay in one place for a long time.

Any ideas, please, as to a good home for the dosh - it's just over £20k.

Also any legal eagles might care to advise about winding the Trust up and giving our Mother all the money to enjoy in her remaining years.

thanks.

oramgepekoe

As one of the trustees for the discretionary trust for my son I know your problem well. In the past I've been able to use HSBC High Interest Deposit Bonds which are fixed rate. Interest can be paid monthly or annually.

Are you going to have to do the Trust's Tax Return yourself now?

You'll probably need a Treasurer's account anyway to move money around and pay the tax bill etc.

You say that the income goes to your mother for life but what does the trust say happens to the capital on her death?

Scooterman

Dear Orangempekoe

Many thanks for your very swify reply. I will check out HSBC offerings.
I had assumed that if she were to receive interest net of tax there would be no need for cheques to the Revenue at any rate, and the interest itself could go direct to her.

On our mother's death the capital will pass to her issue, i.e myself and siblings.

Taxman said that as an administrative concession in view of small size no need for Tax Returns provided income all goes to our mother and that we advise any changes. I am happy to attempt the Returns, as and when.
DIY just saves so much in (usually) exhorbitant "professional" fees.

I wonder whether, taking all the circumstances into account, myself and bro and sisters could renounce our entitlement and amend the Trust deed to give the money absolutely to my mother, who could then gift it away in tranches small enough to minimise her estate's eventual exposure to IHT, or indeed blow it all on a cruise or whatever!

Anyway, appreciate you interest and advice.

dunstonh

As trustees you are legally obliged to do what is best. Placing it in an account may not be considered the best option and could lead to legal action against you (extreme but has happened). If you could show you had taken advice first, then you would have satisfied your requirements.

Using a solicitor and stockbroker would cost an awful lot of money. They would certainly be thorough but a small estate like this really doenst need the actions of a solicitor. A stockbroker, maybe, if shares are being used.

trust_treasurer

Try an independent financial adviser (whole of market) who will give free advice and help with appliocations.