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Trust fund investment
Posted: September 12th, 2018, 1:33 pm
by teecee90
Can anyone advise on the best way to invest a trust fund?
I am one of two trustees charged with managing a modest inheritance fund for my cousin, who has a learning disability. We want to invest some of the money in a couple of Vanguard LifeStrategy funds. The trust deed is currently being written and the trust will be registered with HMRC as a "trust for vulnerable beneficiaries".
Does anyone know how best to go about setting up a broker account in the name of the trust? Is this something that should be relatively simple?
Thanks
Re: Trust fund investment
Posted: September 12th, 2018, 2:47 pm
by tjh290633
The big Investment Trusts are very easy for bare trusts, but that is not what you need. Have a look at what F&C Asset Management have to say on the subject. Actually they are now part of BMO, with HQ in Montreal, but they seem to offer trustee services. I'm sure that they are not alone.
TJH
Re: Trust fund investment
Posted: September 12th, 2018, 4:32 pm
by teecee90
Thanks, I'll try F&C.
It's early days, but not much luck so far. Both Halifax and Vanguard say that they only allow personal accounts, not accounts in the name of a trust.
Re: Trust fund investment
Posted: September 12th, 2018, 4:54 pm
by argoal
I believe that Hargreave Landsdown will support setting up trusts for children.
They have a guide on investing for children that contains the following:
Bare Trusts are the simplest type of trust
and are created when gifts are made into an
investment account with the intention of
creating a trust. The child is the beneficiary
and there are normally two adults acting as
trustees. The child becomes entitled to have
the investments transferred into their name at
18. However, a trustee may be able to distribute
money earlier, for example to meet school fees.
The designated account offered by Hargreaves
Lansdown is called the HL Junior Investment
Account. It is simply an HL Fund & Share
Account which belongs to the child but is held
in the name of the adult trustee. As well as
completing the application form investors
should complete and retain the ‘Election for
Bare Trust’ form, which confirms the intention
to create a Bare Trust.
The whole guide can be downloaded at:
https://www.hl.co.uk/free-guides/investing-for-children
Re: Trust fund investment
Posted: September 12th, 2018, 5:00 pm
by teecee90
argoal wrote:I believe that Hargreave Landsdown will support setting up trusts for children.
Thanks for the reply argoal, but this isn't a children's trust. The beneficiary is an adult with a learning disability.