We have a situation where a child (one years old) will be receiving money from benefactors following the sudden death of her father in October 2022. The money (approx. starting amount between £70-90k) to be put in trust for the child. This amount might increase in the following 6 months, with a view to the money then being invested. The child lives in Florida, USA. Mother is American and father was British. Mother and baby currently in UK but soon to return to USA. Benefactors all in UK. The mother would need access to the funds for things the child should need for maintenance and such like before the child turns 18 and to take the child on holiday for example. It is likely that when the child turns 18 the trust will be brought to an end and the fund given to the child.
Have any other practitioners had a similar scenario and if so, what conclusion did you come to about the best sort of trust to have in these circumstances, a Life Interest Trust, a Discretionary Trust, or a Bare Trust? And because the child and her mother would be living in the USA, I’m also wondering if it would be better to have the trust set up and money invested in the UK or the USA? What would be the tax consequences/complications pros and cons for each.