Bereaved Minor Trust
Mrs Taylor is sadly killed in an accident leaving money to her son aged 6 – the Trustees need advice on how to invest it for the future, minimising tax but meeting their Trustee obligations.
- A mother Mrs Taylor dies in an accident leaving a son aged 6
- The Will specifies entitlement at age 18
- Estate assets are £220,000 cash from investments
- A Trust is created as the child is a minor.
- No income required initially from the Trust
- Ensure completion of Vulnerable persons Election form VPE1
- Income and Capital Gains are taxed on the beneficiary with full personal allowances
- Emergency reserve fund provision to be held in a Trustee Bank Account £20,000
- Remainder of £200,000 into a collective portfolio
- Invested in a diverse manner across the main asset classes UK & Overseas Equities, Commercial Property and Fixed Interest securities.
- Asset allocation to match Trustees’ risk profile
- Income to be accumulated until required
- Increase diversification by investing in a range of 10-15 funds
- Arrange investments on appropriate Platform/Wrap
- Review and rebalance the trust asset on a regular basis.
Benefits from advice given
- Trustees meet their duties/responsibilities under Trustee Act 2000
- Diversified strategy achieved
- Strong medium to long term growth potential to benefit the beneficiary
- Natural income accumulated but available to distribute for the beneficiary’s needs if required.
- Simplified administration/reporting from Platform/Wrap
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We will look to carry out a regular review of your circumstances, objectives, needs and portfolio performance to ensure all arrangements continue to be suitable and advise of any changes that may be appropriate.
This example is for illustrative purposes only, based on current legislation and tax allowances. Tax rules and regulations are subject to change.