Children have inherited... need advice please

[Pleiades45]

My 3 children have inherited a sum of money from my Aunt. The Will states 'The Trustees shall hold my residuary estate upon trust for such of the sons of....... as shall survive me and attain the age of 18 years in equal shares.'

Myself and a cousin are names as Trustees. So how to invest the money? I've been looking for a high interest savings account which all the banks can offer me but none can offer me the protection of a bare trust. I was told they are removing themselves from this market. My cousin has expressed that he wishes to see the money correctly placed for the boys but I'm not sure as to his commitment to manage the money with me over the next 11-14 years.

So where do I find a suitable account, or failing that can I put the money into a child's savings account with the stipulation I manage the account but cannot make any withdrawals? Should the money go into an account 'titled trust of the late.....' rather than into the children's names?

What exactly does 'hold my residuary estate upon trust' mean? Does it mean it has to be in a Trust Fund allbeit a bare trust?

Lots of questions in there, hopefully someone will have some sound advice.

I am not sure but I think that the sense of "trust" here is that you as the trustee retain control over the money until the children reach 18? So how ever you invest the money it will be held in trust for the children.

I would suggest a bond. There are some with interest rates over 4% - clydesdale had one recently.

I am saving for DS and all of the accounts I have set up refer to me as "trustee for DS"

It used to be the case that the trustees of a trust had to invest the monies in accordance with the Trustees Investment Act. Broadly speaking (at the time I did my exams) the standard investment was in an investment account with the TSB.

Try the CAB, they might be able to clarify things a little.

Can't offer advice about how to invest, but I don't think it's a bare trust. The reason (I think) is that to inherit the children have to live until they're 18, and if it refers to "the children of x" rather than naming them, who knows when the class of beneficiaries can ever truly close?

Might be best to take the advice of a trust/probate lawyer. Mumblechum might be along sometime and have some valuable input.