Trust fund help

[Mamma191938]

My family have set up a trust fund for DD. She is one of two children I have. The trust is discretionary so it does not name either child, it refers to “grandchildren” so in theory is includes my second child. But the solicitor said my parents can name DD in a letter of wishes to go with the trust deed. The solicitor advised that a discretionary trust is by nature flexible so this is the way to do it.

However Metrobank are asking for a named beneficiary. Is it sufficient for the trustees to just tell them the beneficiary is x?

I’m getting all these questions from my parents secondhand and I’m not dealing with the bank directly so it’s a bit of a mess. I told parents to speak to the solicitor and the bank but they complained that it takes weeks to get an answer back. So I’m hoping there might be some advice on here.

Is this a discretionary will trust for a child (grandchild) with special needs? Just wondered why the other child is or may be excluded. Perhaps there is a separate trust fund for that child.

I don't believe the objects (potential beneficiaries of the trust) need to be named if it is a group such as "for the benefit of my children, grandchildren", but if it is for just one person who because of disability etc. is unable to manage their own affairs, I think they might need to be named specifically.

I am however, many years gone from dealing with trusts in a former life, so things may have changed in the meantime. Others with current knowledge may help further.

The other child has a separate trust due to disabilities. This trust is for DD who is not known to have disabilities at this time.

I don’t know why Metrobank are insisting on having a named beneficiary then.

Maybe because if the object(s) of the trust are "grandchildren", then it includes your other daughter, and any existing or future grandchildren you or your siblings (if you have any) may have.

The letter of wishes is a guide to the trustees that they should only appoint to your DD who is not disabled, but it does not copperfasten anything really, unless for example some sort of legal action is taken against the trustees.

Seems to me it would be far safer to name her and redraft the trust document to reflect that.

But I am an amateur, and I'm just giving food for thought. Others with legal backgrounds may contradict me or have further information.

At the end of the day, the safest thing to do is to get the legals to draft up the document naming your DD.

@Mamma191938 I think there is an option for a class of beneficiaries e.g. grandchildren.
It needs to reflect the wording of the Trust deed, which Metro bank hold a copy of.
I have the same situation and that's how I set up the bank accounts.

They got a STEP qualified solicitor to draft the trust document. They said this is the way to do it. 🤷‍♀️ I had a separate solictor, also STEP qualified, to look it over and they said it was fine.

An ok, that’s interesting and new to me. Why doesn’t Metrobank just say that?!

They are literally saying without named beneficiaries they can’t pay any funds out. The beneficiary is named in the application form but not in the trust.

• If there is a class of beneficiaries rather than named individuals, the details of the class must be input into the relevant section of the application form. Beneficiaries should only be recorded as part of a class if they cannot all reasonably be identified individually by the trustees. If all the members of the class can be identified individually, they should instead be recorded as individual named beneficiaries both with TRS and on the application form.

As there are only two GC then it sounds like they should both be named rather than using a class of beneficiaries? Both with TRS and the application form.