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EternalOptimist
2nd October 2010, 11:52
Does anyone have any experience of trust funds ?
I was executor of a will and have some money to give to a ten and a nine year old. Is there such a thing as a trust fund/account ?
what are the pitfalls




:rolleyes:

MarillionFan
2nd October 2010, 12:08
Does anyone have any experience of trust funds ?
I was executor of a will and have some money to give to a ten and a nine year old. Is there such a thing as a trust fund/account ?
what are the pitfalls




:rolleyes:

There are different trust funds available. The government in it's wisdom has been paying out £250 per child 'trust fund' vouchers on birth. We top up the funds by £20 per month, but frankly the return has been in terrible and in my daughters case is worth less than we started with.

An independent IFA may have more options.

Personally I recommend the 5 year Yorkshire savings bond for children (Child Savings Bond - Savings - Personal Banking - Yorkshire Bank (http://www.ybonline.co.uk/personal/savings/childrens-savings/child-savings-bond/))

It was 5% Gross, then 4.45%. I see here that they have dropped it again in the last week to 4%. For a child the savings are tax free.

Dependent on the amount I would consider a longterm bond, some premium bonds and something with an IFA. Avoid the high street banks.

Savings for children are an absolute joke and I've been sitting here toying with the idea of a 'childrens building society' for about a year. Pity I know bugger all about starting a building society.

Saddo
2nd October 2010, 12:36
An IFA sounds like the best option here. The thing about what you are considering is that the money can be locked away for a few years, and IFA's ought to be able to advise what the best options are. No harm in asking - whilst they will charge for advice you could ask whether it might be something they would be happy to give advice on, and what cost.

EternalOptimist
2nd October 2010, 17:48
An IFA sounds like the best option here. The thing about what you are considering is that the money can be locked away for a few years, and IFA's ought to be able to advise what the best options are. No harm in asking - whilst they will charge for advice you could ask whether it might be something they would be happy to give advice on, and what cost.

I know that you are trying to be helpful, but please read the op.

If I wanted to speak to a snakeoil salesman, turd-eating, fckwit son of a camel, sh!t-kicking tosspot, then I would consider an IFA.

What I really want (which, coincidentally, is why I mentioned it) is to find out if anyone here has experience of this.

I mean, what is a trust fund, are they policed ? who polices them. whats to stop a dodgy parent absconding with all the loot

etc


:rolleyes:

shaunbhoy
2nd October 2010, 20:46
whats to stop a dodgy parent absconding with all the loot

etc


:rolleyes:


That would be my advice.
Abscond with the wonga making sure they know that you blew it on wine, women, and the new pink Everton Shirt.
It will be a life lesson on not trusting any fooker. And let's face it, in 21st Century Britain that will be worth far more than any free handout of cash will ever be to them.

PS You don't have to pay me any cash for this tip, but if you PM me, I'll let you know where to send me a bottle of decent Malt for my sage advice.

:wink

EternalOptimist
2nd October 2010, 20:50
That would be my advice.
Abscond with the wonga making sure they know that you blew it on wine, women, and the new pink Everton Shirt.
It will be a life lesson on not trusting any fooker. And let's face it, in 21st Century Britain that will be worth far more than any free handout of cash will ever be to them.

PS You don't have to pay me any cash for this tip, but if you PM me, I'll let you know where to send me a bottle of decent Malt for my sage advice.

:wink

shut it, klunge sponge



:rolleyes:

suityou01
2nd October 2010, 20:50
I know that you are trying to be helpful, but please read the op.

If I wanted to speak to a snakeoil salesman, turd-eating, fckwit son of a camel, sh!t-kicking tosspot, then I would consider an IFA.

What I really want (which, coincidentally, is why I mentioned it) is to find out if anyone here has experience of this.

I mean, what is a trust fund, are they policed ? who polices them. whats to stop a dodgy parent absconding with all the loot

etc


:rolleyes:

You can start a trust on your own. Effectively a limited company with board of directors. Bung the money in there, charge a 5% admin fee (to cover accountants fees) and then the company can invest the money. Transfer the shares to the kid/kids when old enough and job done.

shaunbhoy
2nd October 2010, 20:54
shut it, klunge sponge



:rolleyes:

Wasn't remotely funny even first time round.

HTH

Iron Condor
2nd October 2010, 20:55
Dont know much about trusts apart from what i have read regarding dodgy IR35 schemes

You would setup a trust and you would probably be the trustee of the trust?

google 'Trusts for vulnerable beneficiaries'

EternalOptimist
2nd October 2010, 21:04
Dont know much about trusts apart from what i have read regarding dodgy IR35 schemes

You would setup a trust and you would probably be the trustee of the trust?

google 'Trusts for vulnerable beneficiaries'

aye. Ive done that. It seems to be a massive grey area. everyone knows what a trust fund is, but noone can define a trust fund.




:rolleyes:

Iron Condor
2nd October 2010, 21:07
aye. Ive done that. It seems to be a massive grey area. everyone knows what a trust fund is, but noone can define a trust fund.




:rolleyes:


Perhaps you should go and ask over in 'Legal and Accounting'.

EternalOptimist
2nd October 2010, 21:13
Perhaps you should go and ask over in 'Legal and Accounting'.

you are right, but this is the best place to get good general advice and experience.



:rolleyes:

suityou01
2nd October 2010, 21:15
you are right, but this is the best place to get good general advice and experience.



:rolleyes:

:rollin::rollin:

EternalOptimist
2nd October 2010, 21:16
:rollin::rollin:

trust me. they helped me with crabs a few years ago.



:rolleyes:

suityou01
2nd October 2010, 21:18
trust me. they helped me with crabs a few years ago.



:rolleyes:

These ones?

http://www.johnpratt.com/items/docs/lds/meridian/2005/images/fiddler_crab.jpg

MarillionFan
2nd October 2010, 21:20
If you need Accountancy help don't ask an Accountant ask Cuk.

If you need Legal advice don't ask a solicitor ask Cuk

If you need Contract advice don't ask the PCG ask Cuk

If you need financial advice...yada yada

EternalOptimist
2nd October 2010, 21:21
These ones?

http://www.johnpratt.com/items/docs/lds/meridian/2005/images/fiddler_crab.jpg

no, mine were bigger, japanese, and there were about a thousand of them infesting my @rse-hole and sack region



:rolleyes:

Gonzo
2nd October 2010, 21:23
A Trust is a quasi-legal entity in it's own right.

A trust deed establishes the trust, appoints trustees (i.e. real people or companies) to run the trust and specifies what the purpose of the trust is and possibly how it will be managed.

It is not a million miles away from the concept of a Limited Company in that it is an entity in its own right with individuals appointed to manage it according to rules set out at its establishment, but unlike a Company a trust is not recognised as an individual so if it holds assets, investments, bank accounts etc, these will be registered in the joint names of all the trustees, not the trust itself. There is no central registry of trusts.

The trustees have legal obligations set out by the trust deed but I don't know what the sanctions against them could be if they run off with all the money for example.

To set up a trust you need to see a Solicitor. You could probably do it yourself in theory, but not if you don't know what you are doing.

mudskipper
2nd October 2010, 21:24
no, mine were bigger, japanese, and there were about a thousand of them infesting my Aa Sou and sack region

:rolleyes:

:spel

suityou01
2nd October 2010, 21:25
A Trust is a quasi-legal entity in it's own right.

A trust deed establishes the trust, appoints trustees (i.e. real people or companies) to run the trust and specifies what the purpose of the trust is and possibly how it will be managed.

It is not a million miles away from the concept of a Limited Company in that it is an entity in its own right with individuals appointed to manage it according to rules set out at its establishment, but unlike a Company a trust is not recognised as an individual so if it holds assets, investments, bank accounts etc, these will be registered in the joint names of all the trustees, not the trust itself. There is no central registry of trusts.

The trustees have legal obligations set out by the trust deed but I don't know what the sanctions against them could be if they run off with all the money for example.

To set up a trust you need to see a Solicitor. You could probably do it yourself in theory, but not if you don't know what you are doing.


If you need Accountancy help don't ask an Accountant ask Cuk.

If you need Legal advice don't ask a solicitor ask Cuk

If you need Contract advice don't ask the PCG ask Cuk

If you need financial advice...yada yada


Nice one Gonzo.

In your face MF :wink

EternalOptimist
2nd October 2010, 21:29
thanks Gonzo.
my next problem, for a small amount, 3k per kid, do I do it the legal way

or do I do it the informal way



:rolleyes:

MarillionFan
2nd October 2010, 21:32
thanks Gonzo.
my next problem, for a small amount, 3k per kid, do I do it the legal way

or do I do it the informal way



:rolleyes:

You really are taking the piss aren't you. 3k each!!

Stick it in a bond for goodness sake.

Gonzo
2nd October 2010, 21:33
Nice one Gonzo.

<snip>Oi! Keep me out of of your petty squabbles. :p

Gonzo
2nd October 2010, 21:35
thanks Gonzo.
my next problem, for a small amount, 3k per kid, do I do it the legal way

or do I do it the informal way



:rolleyes:It is hardly worth it for that amount. I would just give them the money now and have done with it.


EDIT: For that amount, MF's original response is the best one that you have had. :eyes

EternalOptimist
2nd October 2010, 21:40
You really are taking the piss aren't you. 3k each!!

Stick it in a bond for goodness sake.

I sincerely hope you are never left in charge of kids, a project, a house, or matches.
Your levels of understanding, empathy or sympathy are close to zero.

Please keep it shut from now on.


To the parents of the kids I am discussing, 3,6 or 9k is an absolute fortune. The temptation for them to rip it off would be almost irresistable. My objective is to keep it intact for 10 years, till they are 18. So do I do it legally , or informally.

Please, MF, keep it shut from now on.


:rolleyes:

suityou01
2nd October 2010, 21:52
I sincerely hope you are never left in charge of kids, a project, a house, or matches.
Your levels of understanding, empathy or sympathy are close to zero.

Please keep it shut from now on.


To the parents of the kids I am discussing, 3,6 or 9k is an absolute fortune. The temptation for them to rip it off would be almost irresistable. My objective is to keep it intact for 10 years, till they are 18. So do I do it legally , or informally.

Please, MF, keep it shut from now on.


:rolleyes:

Honestly, for 3K a bond is a reasonable idea. Alternatively, the interest rates are going to rocket at some point, how about a long term savings account such as ING?

MarillionFan
2nd October 2010, 21:55
And EO you have been given a decent response.

Again, you really are an insufferable twat.

A longterm bond would be best. Failing that instruct an IFA. That would be the best thing you could do!!!

EternalOptimist
2nd October 2010, 21:56
Honestly, for 3K a bond is a reasonable idea. Alternatively, the interest rates are going to rocket at some point, how about a long term savings account such as ING?

my question isnt about the return, its about the nature of a trust fund. What the heck is one ?

do I need to go the full legal route, or is there an informal way



:rolleyes:

EternalOptimist
2nd October 2010, 21:57
And EO you have been given a decent response.

Again, you really are an insufferable twat.

A longterm bond would be best. Failing that instruct an IFA. That would be the best thing you could do!!!

shut it gobshite. stay out of my threads you boring cnt

suityou01
2nd October 2010, 22:00
Chaps, please. Desist.

MF was trying to help. Rare occurence that it is.
EO you are trying to do the right thing, and credit the posters in general with the sense to give a responsible answer (not always going to work).

Feel the love :wink

norrahe
2nd October 2010, 22:24
Chaps, please. Desist.

MF was trying to help. Rare occurence that it is.
EO you are trying to do the right thing, and credit the posters in general with the sense to give a responsible answer (not always going to work).

Feel the love :wink

MF trying to help?

Methinks it was more along the lines of :ladybags: and :fight:

MarillionFan
2nd October 2010, 22:29
MF trying to help?

Methinks it was more along the lines of :ladybags: and :fight:

I've only placed a few of my own threads and posts recently on where to invest money for kids. It's a very important decision.

Nothing worse than those who don't listen though.

MarillionFan
2nd October 2010, 22:41
And a final point. And frankly I don't know why I'm ******* bothering.

If you are concerned that because of the amount (say 3k) is a 'life' changing amount that the parents or kids may abscond/waste. Effectively, you are the legal guardian if the money. A bond/fund etc will not transfer until they are (16/18 would need to check). By opening it yourself you hold it in trust until said time, therefore it cannot be usurped by others.

suityou01
2nd October 2010, 22:49
And a final point. And frankly I don't know why I'm ******* bothering.

If you are concerned that because of the amount (say 3k) is a 'life' changing amount that the parents or kids may abscond/waste. Effectively, you are the legal guardian if the money. A bond/fund etc will not transfer until they are (16/18 would need to check). By opening it yourself you hold it in trust until said time, therefore it cannot be usurped by others.

I think you have been very helpful.

HTH

EternalOptimist
3rd October 2010, 04:06
And a final point. And frankly I don't know why I'm ******* bothering.

If you are concerned that because of the amount (say 3k) is a 'life' changing amount that the parents or kids may abscond/waste. Effectively, you are the legal guardian if the money. A bond/fund etc will not transfer until they are (16/18 would need to check). By opening it yourself you hold it in trust until said time, therefore it cannot be usurped by others.

Yes , but who holds the bond/fund/account ? (i.e. who is the trustee) the executor of the the will, or the childs parent/guardian.
With the governments scheme, its the parent/guardian.


:rolleyes:

Gonzo
3rd October 2010, 05:49
Sheesh. Why is this so difficult? ;)

I think the Government's Child Trust fund is the most economical option. The money belongs to the child but they cannot spend it until they turn 18.

The Government scheme is not available though to children born before 1st September 2002.

If that is not an option then I think that you should see a solicitor who can draw up a trust deed. The trustees can be you, your missus, the executor of the will, anyone, but the solicitor can explain the legal implications of undertaking that role, I can't.

The executor of the will then transfers the cash / investments / doll collection / whatever to the trustees and they have to do with it what the trust deed says they must do.*



* I am not qualified to give this advice. :rolleyes:

MarillionFan
3rd October 2010, 08:02
Yes , but who holds the bond/fund/account ? (i.e. who is the trustee) the executor of the the will, or the childs parent/guardian.
With the governments scheme, its the parent/guardian.


:rolleyes:

I see your point with that as executor, sorry.

Sounds like the same problem I'd have with my sister. She wouldn't be able to not touch one of the kids monies.

There are plenty of free 1/2 hour legal consultations you can try. Heres one.

Guardian, How to Appoint, Setup a Childrens Trust Fund and Protect Your Family (http://www.gb-legal.com/Oxfordshire%20Protecting%20Your%20Family.htm)

and phone up the Yorkshire Bank to check the legal situation. If you can manage them in bonds then you can keep a direct eye on it and always ensure you get the best deals.