It may be possible to set up a trustee savings bond for the following types of trust:
This type of trust involves the beneficiary having an immediate and absolute right to the capital and interest in the trust.
Interest in possession trusts
This would entail the beneficiary having the right to trust income after any trustees’ expenses are taken out.
A discretionary trust would generally entail trustees being able to decide how to use the trust’s income and, in some cases, the capital.
With such trusts, the beneficiary would be entitled to receive capital or income upon satisfying a prior requirement, such as reaching a certain age or surviving a specified person.
There are a number of different types of trustee savings bonds on the market, all offering different features. As you compare trustee savings bonds, you might wish to consider:
- Access options: instant access or notice
- Methods of operating the account, such as by linking it to an existing account
- The interest rates offered
Keep all of these various options in mind while you are looking at the details of individual policies by different providers.