Child Long-term Investment (Trust?)

smreynard

Hi,
I'm new to all this, so apologies if this has been dealt with before. My son who is 11 has been left money in my father's will which he cannot have until aged 21. What shall I (as executor) do with it? Should I invest it in my name or his? Presumably the Child Trust Fund is only available to those with vouchers? Any advice would be gratefully received. We are looking at a sum of around £7,000.

dunstonh

If the money is for your son and you are going to be the trustees for that money, then you need to be seen to do the best for you son. You have a legal obligation and liability to ensure that the money has been invested in the best interests of your son (and not you). If you get it wrong (and have a falling out with your son) you could be taken to court for mismanagement of the funds. So, its usually best to seek independent advice unless you feel you know what you are doing.

Investments exist which allow trusts to be put in place to ensure that the proceeds are distributed correctly. Which one would be best would depend on a range of circumstances.

ReportInvestor

I'm sorry to say that the will isn't very helpful.

£7K isn't enough for it to be worth setting up trust to keep the money beyond 18, when your son would be entitled to it.

And Gordon Brown is also playing silly b****rs with money left to children beyond 18 and up to 25 - Situation unclear

I suspect you will have to hold the money as trustee until your son is 18 and give it to him then.

It is possible to set up a bare trust, linked to an investment like an investment trust, at no extra charge.

Alternatively you could hold the money in a BS account until he is 18 with you as trustee.

smreynard

Thanks for the helpful advice. I had wondered if I could just keep the money invested in my name as trustee. My father had meant for him to have it at 18 but the solicitor made a mistake in the Will which wasn't noticed until after his death.