Assets to be held UPON TRUST

[PMU]

Where a will states that the assets for child beneficiaries are to be held UPON TRUST by the trustees until the the children reach a certain age, am I correct in assuming that there is no need to establish a trust for the child beneficiaries and the assets can be held by the trustees until they are passed to the child beneficiaries?

Secondly, can the assets (e.g. government bonds) be held in the name of the child beneficiaries or must they be held in the name of the trustees? The issue here is really one of tax; presumably, if held in the name of the trustees any coupon would be taxed at the trustee's marginal rate but presumably at the child’s marginal rate if held in the name of the child? (Does a child pay tax on income in Ireland?)

 

[j26]

The will is the document creating the trust. The bonds can be taken out in the trustees names, and transferred to the beneficiaries when the conditions of the trust have been met (the children reach the relavant age).

As for tax, I can't advise, except that the income from the trust is not part of the trustees personal income, and should not be taxed as such. Perhaps an annual tax return for the children would be required, but I don't know.

 

[PMU]

Thank you for your clarifications.