We have a bare trust created by a great grandfather for the benefit of his great grandson. The trustees of the bare trust are the two parents of the child. The mother employs a nanny to look after the child and we are considering whether it would be possible to pay for the nanny out of the trust’s income. The point that I am not sure about is whether such a payment is for the benefit of the child (which would be within the scope of the trust’s remit) or for the benefit of the parent (which wouldn’t). I would appreciate the forum’s views on this.
Is there any evidence of great grandfather’s particular reasons for making such provision? He seems to have been content for the parents to be trustees i.e. that his purpose was not to protect the child from their possible depredation by choosing an independent trustee. I can see that someone of a Rees Mogg persuasion would approve, whereas one of an Owen Jones view might not. The parents just need to accept that when the child is an adult there might be repercussions if the child is disapproving and pens an article in the Daily Mail at the instigation of a significant other.
Jack Harper