Trust fund

[Hoolahoophop]

Dh wants to set up an off shore trust fund for DC that we contribute to as and when we can. He is hoping to keep it locked away from them until they are 30 I think this is too old. Feels like its not much of a gift, shows no trust and too strong an attempt to control.
Are there good valid reasons t OK keep it locked so long and is it possible. Thanks.

Any reason why an offshore trust?

These are now very complicated tax affairs, and the 'tax free offshore' ship has long since sailed?

30 is pretty old, could you not word the trust to include in the expression of wishes 'To be used for a house purchase / university etc'

If a trust fund then presumably the DC will have discretionary access to it prior to vesting? Or is the intention for it to simply pay out a lump sum?

Personally I'd avoid any set up that gives the DC unfettered access to large sums of money regardless of circumstances.

Off shore as that's what his parents did I think. His money is untouched (late 40s) the tax to get hold of it would be massive. I think he's keeping it for pensions.

Currently the DC would have about 20k each, so more of a house deposit than any kind of steady allowance to live the high life so I'd rather they can get it earlier.

Given the figures involved just keep it in your name and give it to the DC as and when you think it's appropriate.

I do this with clients, but it’s not straightforward. See a suitably qualified IFA, the usual misinformation (&rubbish) written here.

All that said for £20k each it’s not really worth it. Do what Hoola says. Unless your estate is well over £2M and climbing rapidly the planning isn’t there.

Sounds like some planning opportunities are with your husbands money though. Find the Trust Deed and take advice. The tax offshore is definitely complex and I’m surprised that since you husbands money feels ‘trapped’ that he’s so keen.

Drama not Hoola - that’s you OP

Thanks yeah, yeah. That makes sense. I'm suprised by dh. But he seems to like having his there just not using it! It's nowhere near the millions either. I had thought a junior ice or savings account would be fine for them.

I suppose it’s about control and I do understand his reluctance to part with the money until they are older, but filling up your own ISA’s or using your own pensions - using the PCLS to gift, would make more sense - clearly with the usual caveats of individual circumstances applying here.