Client has received nearly £600k in DIs payments for her minor daughter. This appears to have been paid out at the discretion of the trustees to the mother.
Can this only be a bare trust until the child is 18, or can she set up a DT now to allow more flexibility going forward?. Gut feeling says no as the money has been paid out to her already.
Thanks
Kam
The key question is whether or not the parent received the money as trustee for her daughter or as nominee merely to give the pension trustees a good receipt. Pension trustees almost never ever create a trust over the monies they pay out, as opposed to paying them to an existing trust, so unless the parent or someone else sets up such a trust the money belongs to the minor absolutely and the parent’s responsibilities are governed by family law and property law as it relates to minors and not by the law of trusts. So s.31 TA should not apply nor TRS.
Jack Harper