[Brom143]

Does it have to be in a bank account to use the money from trust fund? Someone asked if it is allowed or will it have to be transferred to a personal bank account? Their problem is that it will have a lot of tax on it if it's in a bank account.

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[WestCoastCanadianGirl]

I believe that the only stipulation is that the money is "instant access," meaning that if the account holder went to the bank this afternoon, he or she could withdraw any amount of money without having to wait x amount of time before the funds are released.

So, if they can get money from the trust fund immediately, then it's fine to keep it there.

 

[WestCoastCanadianGirl]

It doesn't matter to the Home Office if there is a withdrawal penalty charged to the account holder if the money is taken (that's none of their concern), just as long as the money can be withdrawn immediately.

 

[Joppa]

It's more complicated than that. A trust fund is administered by trustee(s), so you as the beneficiary don't have access to it but only if the trustee(s) agree to release funds to you. Also the account has to be in your or your partner's name, singly or jointly.

 

[WestCoastCanadianGirl]

I stand corrected.

 

[skyf]

As stated Trust Funds can be complicated instruments, basically designed to protect the assets for the benefit of named Beneficarys, in a Tax efficient way. There can be all manner of conditions regarding how the fund is managed and distributed and often Beneficaries can only access funds at pre-determined times. Trust Funds can include property, company shares etc as well as cash.