The Lemon Fool

Apologies for the naive question, but I'm a newbie in this area. I have a bare trust from HL for my granddaughter, which I set up about seven years ago, and I need to use part of it in order to pay some of her school fees.

Can I get HL to make the transfer directly to the school's bank account? Or do I transfer the money into my own bank account and then pay it onward to the school? And in the latter case, how do I explain the situation to the money laundering bods at my bank? (I've also read something about needing to record it on my self-assessment form as well.)

Muchas gracias

BJ

bungeejumper wrote:Apologies for the naive question, but I'm a newbie in this area. I have a bare trust from HL for my granddaughter, which I set up about seven years ago, and I need to use part of it in order to pay some of her school fees.

Can I get HL to make the transfer directly to the school's bank account? Or do I transfer the money into my own bank account and then pay it onward to the school? And in the latter case, how do I explain the situation to the money laundering bods at my bank? (I've also read something about needing to record it on my self-assessment form as well.)

Muchas gracias

BJ

You just withdraw the money to your bank account and then pay the fees yourself.
You don't need to report it in any way.

The issue of making a note on your tax return would only arise if, for example, you had sold shares in your name of which the beneficial owner was someone else (eg grandchild or estate where you are the executor). Then it is sensible to note on your return that shares were sold but not reported because you were not the beneficial owner.

I have a similar situation where I will be withdrawing money from my grandchildren's bare trust accounts with HL and then using it to fund their Junior ISA subs.