Trusts and children growing up

[funnyperson]

Does anyone know if it is possible for an over 18 year old to be a trustee of a trust which is set up for him and his sibs to be a beneficiary when his grandparents die (they are not dead yet)? What would be the tax implications if any?

You really need to ask a trust expert on this (trust lawyer), but you can be a trustee and beneficiary. Tax implications, well trusts are still liable to tax, depends on exactly what sort of trust and structure.

What is it that you are trying to achieve?

Thank you for replying- the current trustees are myself and a family friend as the trust was set up when the children were minors but now that my son is over 18 I am thinking it would be good for him to share that responsibility or do people think its best to wait until he is 21? Does it make any difference in tax terms if and when he wants to get a mortgage?

I'm not sure what sort of trust it is - an interest in life trust?

A trust has its own personality for tax purposes. Being a trustee would not affect your son's personal tax position. If he receives any benefit from the trust, this would have tax consequences, but being a trustee won't IYSWIM.

I wouldn't generally advise a client to have one child a trustee but not others where there is any sort of discretion (just because it can cause arguments if one of them has some sort of 'power' to decide who gets what). Is this trust a straightforward life interest trust (so the fund income is paid to X during their lifetime, then capital passes to Y on X's death)? Or is there an underlying discretionary trust?

It's a straightforward life interest trust by the sound of it. Good pint about one sibling being a trustee and not others though in some ways the idea behind making my DS ( who is the elder child) a trustee is to give him authority as the main capital of the trust is housing stock rather than stocks and shares so not easily realisable.

sorry- point