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The difficulty of setting up a trust on a platform

A reader wrote to me last week expressing the difficulties associated with setting up a discretionary trust on a platform. He said that like many parents of disabled children, he and his wife are setting up a discretionary trust into which most of their assets will go when they die.

The trustees will be his daughter and son-in-law, who will invest the trust to generate income to look after their brother and also keep some for themselves. The problem he has had is finding an execution-only platform that will offer him this service.

Ringing around the major platforms, the only one I found that will currently let you set up a discretionary trust on an execution-only basis is Tilney Smith & Williamson's Bestinvest. You do not need a financial adviser to help you set up the account, but you would need to contact solicitors to set up the trust deed and entity. The account – which comes with the same fees as a general investment account – can be set up by the trustees. Bestinvest charges 0.4 per cent a year for account values up to £250,000 and 0.2 per cent on £250,000 to £1m.

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