Bare trusts - confirmation Q
orraloon
Posts: 11,392
Grateful for any experience of using a bare trust to protect monies for the benefit of minors and prevent any possibility of soon to be divorced parent getting mitts on.
In brief, stepdaughter has very young twins, is now a single mother having been abandoned by the adulterous, drug abusing, soon to be divorced father, who it turns out was sh4gging away before, during and after their birth. Scum bag.
We want to secure monies away for the young 'uns, but keep it safe from any attempt by the scumbag to gain access to stick up his nose.
Research would indicate a simple bare trust arrangement, twins as beneficiaries, us as trustees, would work. Trustees control what happens with funds in trust until minors turn 18, but funds belong to them, scumbag parent has no right of access.
Anybody see any problems with this? Other than two 18y.o.s blowing it all on a mega party in 17 and a bit years time.
In brief, stepdaughter has very young twins, is now a single mother having been abandoned by the adulterous, drug abusing, soon to be divorced father, who it turns out was sh4gging away before, during and after their birth. Scum bag.
We want to secure monies away for the young 'uns, but keep it safe from any attempt by the scumbag to gain access to stick up his nose.
Research would indicate a simple bare trust arrangement, twins as beneficiaries, us as trustees, would work. Trustees control what happens with funds in trust until minors turn 18, but funds belong to them, scumbag parent has no right of access.
Anybody see any problems with this? Other than two 18y.o.s blowing it all on a mega party in 17 and a bit years time.
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Posts
I have a few younger family members and I'd only trust one of them with a large amount of cash at 18.
I am not sure. You have no chance.
your daughter cant go disposing of cash or anything else just before a divorce and if they are your assets, then how can this guy make a claim against you?
Totally agree on getting advice re any trust fund you might choose to set up.
Sorry I can't really help, but flippancy aside, I sympathise with your plight and hope you get things sorted out.
The older I get, the better I was.
If the wife wants to hide the money then hide it in an investment after putting it through a couple of accounts. The courts do have the power of discovery and if her ex wants to get the money then could invoke this. However they never look in to investment funds - they stop at bank accounts.
jeez :roll:
this is what i dont understand..... why bother? the OP needs to come back and clarify.
the ex has no claim on the in-laws wealth and the OP can make provision in their Will for the kids, if they see fit.
if he is a drug using waster as portrayed, its likely he ll be very dead soon.
Would any wealth they hold pass to their parents in the event of their demise?
...and you an Stevo say i'm gloomy.
Clarifications. Not the mother trying to hide family assets ahead of divorce settlement; there is little in that pot. This is us seniors gifting a lump sum and smallish chunks on birthdays and holidays etc; invested in dividend bearing stocks with divi reinvestment plus the wonders of compounding over many years could provide a nice wee sum in the future.
She's going through the sh!tstorm, him being a censored means has to go to court to get a financial order for spousal maintenance to ensure that said censored makes some financial provision for the future of his children. In that, all 'family' assets have to be declared and apportioned. Will be a long drawn out and stressful process for her.
From our side, alongside the long term objectives have the short term concern, to keep our contributions out of the reach of censored ; so far all we have done is earmarked our money for them, kept it to ourselves, not gifted into the 'family' so that cannot be counted as part of the assets pot to be split. Could carry on with that. But would stay in our estate, and could get messy to sort out if we get hit by the bus. Also want the mother to have reassurance / psychological support that there is this pot earmarked for her children, in a safe place.
Hence, the trust arrangement scenario. The simple bare trust seems like would give us the protection from a future attempted grab by scumbag. Do have the concern about what happens when minors turn 18, partic if a druggie manipulative father were by some miracle to survive that long.
So, discretionary trust with reliable trustees might be the way. Not talking huge sums here, so little wary of getting 'professionals' involved at £6 per minute.
(What a subject to be internetting about while on hols in southern hemisphere sun! Must be worrying me)
On the other hand, you wouldn't have a go at DIY dentistry after watching YouTube. A couple of hundred quid worth of advice is still a pretty modest investment, and less than the cost of ****ing it up.
Pinnacle Monzonite
Part of the anti-growth coalition
No, I wouldn't like to risk my grandkids future on the word of some bloke on t'internet either.
there is alot to consider here, not least, him being next of kin and/or your kids becoming wasters and still legally entitled to the funds in the trust.
you should be able to get free legal advice through your household insurance or an employer scheme and as said, paying to get it right is a cheap option.... assuming who you use now what they are doing, this isnt a given at all.
change your will ASAP (or write one) as if you (and the missus) meet the proverbial bus it will go to her and potentially on to him. Get her to change (write) her will leaving money to the kids with you as trustees.
For me most of your other issues and solutions will depend upon the sums involved as any benefits could be eaten up by fees. If there is more hundreds of thousands then inheritance tax and it's avoidance becomes an issue
http://www.willwriters.com/
http://www.ipw.org.uk/
However it is an unregulated activity, so it's worth asking around for recommendations.
A will with simple what ifs built in, I.e. If a and b predecessor d then the legacy is held in a simple way until d reaches age x.
AND he charged me less than a quarter what my friend was charged by a will writer AND his firm will handle the probate as and when.
That's my personal advice BUT I'M NOT A SOLICITOR. So to be honest it's worth nothing. For the price of a good pair of wheels see a good solicitor:-)
In my experience advice is expensive, but this is a case where getting it wrong can lead to the money leaking to the wrong parties.