Investment of life interest funds

[Donniford]

Hi

Individual passed away intestate in 2001 leaving a married partner and several children. UK.

Estate size meant that a proportion is held by the partner to receive a life interest from these monies.

Currently held is a property, purchased after 2001, and a proportion in cash earning zero interest.

First question is what restrictions are there on these monies? Suggestion from previous but now retired solicitor is that property can be purchased and also cash can be held on deposit, but bonds cannot be purchased. In addition there is a secondary complication as one of the children, who was over 18 in 2001, has been a signatory on the transactions that are made. It's not clear why, we were just told this at the time. Any help on this would also be much appreciated.

Final question; is there a rulebook on this or similar? Have scoured the Internet with no luck. Thanks in advance.

[dslippy]

There are precise and extensive rules. See either or both of the Trustee Act(s) 1925 and later as amended (from memory only).

[Sam101]

The dangers of investing as a Trustee are that the capital belongs, ultimately to the beneficiaries. Whilst in the hands of the Trustees, they are accountable for that capital and must protect it for the beneficiaries. The 'interest' or income that can be generated from the capital can be available for the upkeep of the interim beneficiaries(someone who has a lifetime interest) or as specified by the Trust itself.

You do need to be very careful and to record all your dealings in order to ensure that you cannot be accused of incorrect management of funds.

Do obtain all the information of Trust management and look carefully at the Trust wording, as that may allow certain action.