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We need to open a trust account for our children for some money they inherited in trust. We were warned that quite a few of the banks are quite reluctant to do this. So the main questions are:

  1. Once its in trust in the account can we move it again?
  2. Do the trust accounts pay any interest?
  3. Can we invest the money on their behalf? How does that work with a "trust" account?
  • Where is it now? The question implies it's already in a trust. – JTP - Apologise to Monica Jul 4 '14 at 12:57
  • i guess it is. it's a cheque from the solicitor naming the trustees – Codek Jul 4 '14 at 15:35
  • The trust will contain the details of how it's to be disbursed, and hopefully how it should be invested if it has time to run. As it stands, the question can't be answered with the details as given. – JTP - Apologise to Monica Jul 5 '14 at 16:11
  • There is no detail on how it should be invested, merely that they can get it when they're 18. – Codek Jul 5 '14 at 19:31
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    Does it have to be a trust? For example, might a Junior ISA do the job? If the inheritance is more than the annual ISA limit (now £15,000 p.a.), then a proper trust may need to be set up; for that you may need to speak to a solicitor who specialises in trusts. – Steve Melnikoff Jul 8 '14 at 11:44
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I'm answering your second and third point. For first point it depends on case by case basis from which organization you are opening your trust.

Trust Account are of different type: To earn interest you account should be of below type. Interest in possession trusts and Income Tax

Trustees are responsible for declaring and paying Income Tax on income received by the trust. They do this on a Trust and Estate Tax Return each year.

There are different rates depending on the type of income - as shown below. Type of income Income Tax rate 2014 to 2015 tax year

Rent, trading and savings 20% (basic rate) UK dividends (such as income from stocks and shares) 10% (dividend ordinary rate)

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