Can someone explain how a trust works please

[FoxtrotIndigoSierraHotel]

This year we became the beneficiaries of a trust from a wealthy relative. This is for the education of our children and we do use it solely for school fees. However, this is not explicitly stipulated anywhere and we have no documentation or any such like. We literally just started receiving a monthly amount in our bank account following a conversation.

I don't understand how this works at all. If I am the beneficiary of a trust does that stop when the children finish their education. Is that money earmarked for me (or my DC) long-term? Another relative has suggested that we would be in receipt of it at some point anyway but this means we can use it now.

I actually have no idea how this works at all! Can anyone shed any light?

You’ll need to speak the the trustees and ask them. The trust will have these details within it. It could be written in such way that the beneficiaries are your children but then may also extend to their children and so on. It could be written in a way in which once your children benefit then the rest is given to someone else completely or dispersed to you or even your children. No one can really advise you on this, you’ll need to speak to the trustees who will be able to confirm further (but it is possible they may not confirm any additional benefit you have from the trust after education to mitigate the risk of you not spending the money as intended on education).

Are you the beneficiary though? It may be your children who are the beneficiaries Who are the trustees?

I actually don't know! Obviously, I'm just very grateful that we've been gifted this in the first place. My extended family are extremely wealthy but we never expected anything from them.

So you started receiving money after a conversation, who was the conversation with? You do really need to know more about this trust as there may be tax implications or you may have been named as trustees etc.

The conversation was with a family member. They stated there would be no tax implications for us as it was essentially a gift.

You need to ask that family member for more information. There are a lot of different ways a trust can work so no one can really advise apart from those who have the details of this particular trust.