what happens to money held in trust for a minor?

Question

My daughters 1) is 19Yrs old 2) is 13 Yrs old have each been left 10% of my aunts estate (An amount of approx £25000 each) when they attain they age of 21yrs the executors, LLoyds Private Banking, inform me that they will hold their shares in trust until they reach 21 what happens now can the girls get any of the money, What does eld in trust actually mean And what will they be charged for the bank to do this?

Answer 1

When dealing with money in trust, it's important to understand the role of the 'Trustee', and the role of the 'Owner & Beneficiary'.

The Trustee (T) is a person (sometimes a group) that controls property and/or money for the benefit of another person or an organisation. As an example, in the case of a bank account held in trust, the trustee has the mandate over the account meaning that they have the actual control over what happens to the funds in it.

The Owner & Beneficiary (OB) is the person (or group) entitled to the benefit of a trust arrangement. In other words, the person that the money ultimately belongs to, even though they may not be entitled to exercise any control over what happens to it while it's in trust.

In your particular case, the will stated that the funds were to be held in trust until your daughters turn 21. In this regard, they are the ultimate beneficiaries of the money (it's theirs), but they are not entitled to do anything with it until they turn 21.

Lloyds sound like they are acting as the trustees, meaning that they are charged with optimising the performance of the shares for the benefit of your daughters - in other words, they'll try to make sure your daughters get as much value as possible out of the shares.

You will have to ask Lloyds what they charge for holding the funds in trust, because the fees charged can vary widely.

I hope this helps.

Answer 2

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RE:
what happens to money held in trust for a minor?
My daughters 1) is 19Yrs old 2) is 13 Yrs old have each been left 10% of my aunts estate (An amount of approx £25000 each) when they attain they age of 21yrs the executors, LLoyds Private Banking, inform me that they will hold their shares in trust until they reach 21 what happens now can the...

Answer 3

What a trust means is that the money is in a protective fund, if you like, that is administered by trustee(s) for the benefit of beneficiaries, in this case your daughters. The trustee(s) have certain fiduciary duties to take care of the money and invest it to make the best of it and your daughters will in theory be able to make sure that they are doing their job and can make a claim against them if not. It may be possible for your daughters to receive periodic interest payments from the lump sum so speak to the trustees about this but they will not be allowed access to the money itself until they are 21, unless there is a good reason and the trustee(s) agree, such as university fees or house deposit. It is entirely possible that your aunt has put in a stipulation about when the money can be released beforehand. You can check with the trustee(s) or with the Probate Office when her will is published. The trustees should advise you in writing of any charges that they will make for performing this function but it is possible that your aunt may have made some provision for these costs also. Check with them direct about this.

Answer 4

Money is often held in trust for children to protect them from adults who might try to influence them before they are old enough to know their own minds.

The best thing for your daughters to do is just forget about the money for now because they won't be able to touch it until they reach 21. The money should be earning some kind of interest if the trust has been set up properly, so hopefully it will go up in line with inflation so that it doesn't lose value.

Answer 5

its essentially a bank account that cannot be accessed until the girls turn 21. a small fee will be taken out of the money depending on how it is set up. but pretty much u cant do anything about it and they cant do anything with the money til they are 21