I have a client who’s wife passed recently and has now had me write a Will for himself as well as LPA’s. He is now intersted in a Lifetime Trust but has concerns over the cash (£600K) put into the Trust,s Banks account as it would only be covered by the FSCS up to £85 ? Currently the cash is split up in multiple bank accounts for this very reason.
Thanks in advance
I would have thought the answer is that trustees should not be holding £600,000 in cash without very good reason as they would be exposed to claims from the residuary beneficiaries for a failure to invest. If there is a good reason to minimise diversification then investment managers could find secure investments such as gilts or money market funds held via a regulated custodian.
We advise NS&I which is backed by HM Treasury. They cover 100% of the £600,000.
Argubley the safest way to hold cash.
N.B I agree with the investment points made above.
Richard Bishop