A client of mine’s mother passed away with a valid will, leaving a pecuniary leagcy to ‘such of my grandchildren as shall survve me and attain twenty-five years the sum of £25,000 each together with the benefit of intermediate income’
The trustees were the executors who were the solicitors, the soliciotors resigned as trustees and appointed my client and their sibling as new trustees.
The funds were then passed to each trustee to invest for the benefit of their own children. My client approached me to recommend an investment for the funds for their own children leaving the sibling to invest their childrens share.
question 1: The solicitors told the client the trust was a bare trust for each granchild. I asked for clarification because of the will wording above and was told it was under RPR for tax purposes but it was still a bare trust in law - I have never seen this before can anyone explain this for me?
Question 2: the sibling has sadly passed away, the funds for their childrens shares are held in a bank account in the siblings name and now locked by probate. Should these funds be taken hold of by the surviving trustee or when the siblings as trustees, took hold of their own childrens funds and placed them in their own bank accounts did they informally appoint the assets out of trust? Should there have been any documentation for this to happen.
This is complicated by a family dispute between surviving sibling and the beneficiaries families. Is there any other problems I haven’t thought of? I have recommended an investment for the trustee and currently only the children of my clients funds are invested.