Discretionary Trust >Investment Trusts.

[Kantwebefriends]

You might like to ask a specialist solicitor about the trust including a Revocable Life Interest to income for your daughter.

I understand that that would mean that the dividends would pass directly to her and be taxed as her income.

My understanding is that this only works if the shares are held in certificated form so that the dividend income can be mandated directly to the beneficiary and not to the Trust. If the shares are held on an investment platform they will only pay the income to an account in the Trustees name, making the Trust taxable on the income. If anyone can find a way round this I would be very interested to hear about it.

Thanks for the warning. Are there large extra costs to holding in certificated form? Any advantages (other than the stunt under discussion)?

[Jimbob47]

I have recently set up a discretionary trust for the benefit of my grandchildren. The problem I am now facing is finding a bank that will open an account in the name of the trust. Despite banking with Lloyds for more than 50 years and having access to their Private Banking service, they say they no longer operate trust accounts. I understand other banks have a similar policy.

Does anyone have any advice?

[PinkDalek]

I have recently set up a discretionary trust for the benefit of my grandchildren. The problem I am now facing is finding a bank that will open an account in the name of the trust. Despite banking with Lloyds for more than 50 years and having access to their Private Banking service, they say they no longer operate trust accounts. I understand other banks have a similar policy.

Does anyone have any advice?

Welcome to the (new) Fool.

There's a fairly recent topic on this subject over at Bank Accounts Savings & ISAs:

Current Account for Trust.
viewtopic.php?f=11&t=18450

May I suggest you ask any follow up questions over there, once you've read what has been written.

[Jimbob47]

Thank you for the link to an interesting thread.

It seems no-one has yet found a satisfactory solution to the problem.