Bare Trusts

[figroll]

Hi Everyone

My 2 children have been left some money by their MIL - not a huge amount, but it is to be left in Trust.

As it is such a small amount we wanted to set up a Bare Trust for them both and may be invest the money in a FTSE 100 Index Tracker until they are 21. My questions are: How do I set this up so that it looks like a Trust? Do I just buy the unit trusts and put their name on it additionally to mine and my husband? If so, that is easy but I didn't think it would be quite so simple!

Thank you!!

It really is that easy. We have index trackers (FTSE All-share, though) for the children (M&G is a good one, low fees and their admin is efficient IME) and they are in dh's and my name with what they call a designation, ie. it has the children's intials after our names. You need a separate fund for each child, obviously.

My understanding is that designating it in this way automatically makes it a bare trust. As far as I can remember there is a box on the form where you can fill in a designation if you want to hold the shares in that way.

But call M&G and ask them, they're very helpful.

Oh thanks for that - that is a big help. It sounded odd that it was so easy because nothing else has been! Thanks again - I will have a look at M&G.