New queries, issue 4634

Efficiency savings

How to merge two identical discretionary trusts to reduce costs of administration.

I act on behalf of two discretionary trusts that arose on the death of a husband and wife within a few years of one another.

The beneficiaries are the same and the asset values are similar at around £900 000 combined. Both pay out to the beneficiaries for school fees living expenses and at the same time cover professional fees.

An investment holding company manages the trust funds a service that attracts its own charges as well as commission and other fees that tend to come along with such investments.

There would be scope to reduce costs if there were just one trust being managed which is of course in the interest of the beneficiaries. If there were only one trust I imagine there would also be scope to merge...