Trust fund for child in broken down relationship.

techguy

As the title says really.

Does anybody know what is involved in setting up a trust.. I am hoping it's not a massively complex process costing thousands and reserved for the rich and famous..

Thanks a lot all.

Browney7

Answering the question asked, your friend may be talking about a "bare trust" whereby the policy would be paid for by him but for the benefit of the child. If he paid in 3k per annum, he would be able to take advantage of the annual small gift exemption such that if he paid in for ten years and ignoring growth, the 30k wouldn't contribute to the child's lifetime CAT threshold.

techguy

Browney7 wrote: »

Answering the question asked, your friend may be talking about a "bare trust" whereby the policy would be paid for by him but for the benefit of the child. If he paid in 3k per annum, he would be able to take advantage of the annual small gift exemption such that if he paid in for ten years and ignoring growth, the 30k wouldn't contribute to the child's lifetime CAT threshold.

Thank you Browney - that's interesting. Any idea on costs to set something up. Are there not also tax benefits on the income that has been used to put into the trust. Can you not contribute to the trust from gross income? I was under that impression.

Jim2007

*** Mod Warning ***

I have cleaned up this one. Stick to the financial topic and no more family law related stuff.

techguy

Jim2007 wrote: »

*** Mod Warning ***

I have cleaned up this one. Stick to the financial topic and no more family law related stuff.

Thanks. It had actually dawned on me to perhaps request that and you beat me to it. Cheers.