Trust Fund Beneficiary

Hi all
My children have been left money in my parents' will. However, they have no access to capital until age 25, so the intention is to put the capital in a Trust account and have interest mandated to them.
The question is, can the size of investment be witheld from them during the Trust setup process? (Yes I know that if it was clear the interim payments were interest they would be able to work out the capital sum for themselves)
The sum of money is significant and I don't want the promise of future inheritance to divert them away from the real business of sorting a career path. Childrens' ages are between 18 and 22.
Thanks
Phil
Reply to
thescullster

Given that one will not gain access to the capital for six to seven years, and assuming the only restrictions on investments are those in the legislation, if the amount is really quite large, a bank/building society trust account is probably not going to be an appropriate investment. If the amount is large, there is a duty for the trustees to get advice from a competent person.
I would suspect that all the information is in the public domain and that executors would be under a duty to inform the grand-children of the details, but I don't know for certain. The trustees would be under a moral obligation to honour the known wishes of the grandparents, and not to impose constraints that the grandparents would not have imposed.
The exact wording or the will may be important in relation to the tax rate on the interest.
I am fairly sure that a trust will be established if it looks like a trust, even if the will doesn't actually use the word "trust".
Reply to
David Woolley
Thanks David
I would not be comfortable specifying any level of risk with this capital. Having consulted an IFA, he says that (based on the no risk premise) bank/savings accounts are the only option. One child has 4 years of investment time remaining, the other has 7. The concern is that, certainly over 4 years, the market/investment may well not be able to recover from any dips. I don't believe that witholding the capital sum amount in any way contravenes the intent of the will.
Phil
Reply to
thescullster
wrote:
But surely if the Will has gone to probate the information will be publicly available anyway unless it was a secret trust?
Reply to
AnthonyL

But your starting premise was that the grandchildren should become financially independent without it, which implies that you can take reasonable risks.
If you tell an IFA that your risk tolerance is very low, the only option
they will ever offer, for however long a period, is a bank/BS account, or probably several, with no more than £85,000 in each.
As a trustee, you are expected to make a risk decision based on the nature of the trust and to mitigate the risks by having plenty of diversity. You should probably be asking the beneficiaries as to their acceptable risk level.
Reply to
David Woolley
Thanks David
I will discuss your comments with my sister (co-executor) to decide on an agreed level of risk.
Phil
Reply to
thescullster
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Thanks Anthony - didn't realise that this all became part of public record.
Phil
Reply to
thescullster

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