I have been appointed as a co trustee of a Will trust along with a child’s mother. The mother (a widow) would like the fund to be used to pay for the child’s private education, this would almost certainly exhaust the trust fund. The child is currently being state educated. I have declined this request. The mother has now requested the income be used to supplement school fees. Any views would be great.
My deceased client had previous requested in a meeting that the funds not be used for paying for private education but the mother is saying this is contrary to the conversations she had. In addition mother has a financial advisor and wants that advisor to advise on the trust. I would prefer to instruct an independent advisor and have suggested the deceased’s former advisor who advised the deceased for many years to keep things separate.
Currently until an agreement is reached funds are being held on my client account not earning any interest, which is clearly not ideal. Any suggestions would be helpful.
Rachel Stafford Legal Services
You are in a difficult position not of your own creation, you must try to find common ground with your co-trustee (who will hopefully appreciate your position as you appreciate hers) so that you are able to come to a sensible compromise on these issues.
There is some merit in using the mother’s financial adviser if this leads to a ‘joined up’ approach.
Clarke Willmott LLP
I think that for members to offer meaningful advice, it would help if you provide further details of the case.
Initially details of the trust - what are the terms? who are the beneficiaries [whether discretionary objects, possible reversioners, or whatever]? and what usual/unusual/additional powers the trustees may have?
Possibly also the age of the child mentioned, and his/her relationship [if any] to the testator.
Can we take it that your late client was not the child’s father; and did he actually give any positive indication about how he would like the money to be used?
You are going to need a trust bank account in any case- Cater Allen offer 0.9% on a 30 day notice account.