Trust Fund

[Catsanddogs30]

My 16 year old daughter has been left about £18,000 to go in a Trust Fund until she is 21.Hopefully she would leave it in longer. Please could any one advise me as I am a complete novice .I was told by the bank that the solicitor had to sort it ,but this is not the case. Many thanks .

How is she getting the money, if it’s through inheritance through a Solicitor and the request of the Will is that the money be held in a Trust until she’s 21, then the Solicitor should either arrange this or give you the name of someone who can arrange the Trust for her.

Yes ,it is through the solicitor.They have said I have to do it Do you have experience of this?Thank you a lot.

Does the will state who the trustees will be?

You have to do what? Are you a trustee?

Can you explain from the beginning exactly what has happened? It's difficult to understand if the trust has been created in the will. It's down to the trustees to invest the money. If you are a trustee the solicitor should have explained more.

My 2 brothers and I are trustees of the will.The solicitor has said we can decide which trust fund it goes into.We have to register it with HMRC.Can any one recommended a trust fund to me?Many thanks.

Why have you name-changed? It's difficult to follow anyway because you give little info to be able to suggest anything......

I haven't deliberately name changed.
My 2 brothers and I are trustees for a will and my daughter is 16 .She has been left money and it is to go into a trust fund until she is 21.I just wanted recommendations for trust funds ,so she gets the best deal when she is 21. I have to set up the fund and register it with HMRC apparently.I apologize for any confusion .Thank you for your replies.

The trust fund is what has been created by the inheritance, it's not something you choose. Are you asking what to invest it in?

If you are holding the money and investing it you are the trustees and that is the trust fund. There are not ready made trust funds that you can just buy. I would put the money into an index tracker, preferably inside an isa, but 5 years is quite a short time if she wanted cash at 21. There are rules for trustees to follow when investing, especially for minors, and you are not allowed to invest in anything too risky. Interest rates are quite good at the moment so you might prefer to hold it as cash in a savings account. Has she already got a junior ISA or Child Trust Fund?

Firstly you are not trustees for a will, that makes no sense.

You may be executors of a will?
and you may be appointed as trustee of a trust that is yet to be created as instructed / required by a will.
The executors of the will use a solicitor to create the trust, and if you are not an executor of the will you will be appointed as trustee of the trust.

Just holding money for someone does not make it a trust. You need a solicitor the create the trust as their is specific legal wording etc. required.

The estate of the person that has died should pay for all costs incurred in setting up the trust.

https://www.investopedia.com/articles/personal-finance/062315/how-set-trust-fund-uk.asp

Once the money is in a trust account, you the trustee will determine how to best invest it for your daughter. You may choose to invest in stocks and shares or you may simply choose to get ordinary interest on the cash.

This is all very useful.Thankyou.

Yes.She does have a C.T.F. already.

What was the reason for putting it in a trust fund?

It sounds like it's just in trust because she's under 18. So you can just invest it or put it in a jr isa for her. It doesn't have to be a formal trust in fact those are hard to create especially for small amounts. Try Leeds Building Society and Skipton for u18 high interest accounts that you could be the signatory for while it's in her name.

Money was put in a CTF from the government. It was a scheme they had when she was born. I added about £3,000.
I shall look into those two recommendations. Thank you