Children left some money in a will

BACKFRMTHEEDGE

My children have been left some money in a relations will. The executor wants to give this money as a bond - this wasn't in the will - it just says that they should get the money. Can the executor do this? I don't want a bond I would rather choose the investment vehicle myself.Help.

Chrismaths

The executor has full discretion over what happens to the money - It is nothing to do with you legally. If the will doesn't specify otherwise, your kids will be absolutely entitled to the money aged 18 as well.

However, the Trustee Act 2000 obligates the trustees of any trust (in this case the executors) to act in the best interest of the beneficiaries, and to regularly review the investments to make sure they are still suitable for the beneficiaries.

Your best option is to talk to the executors, and suggest what you'd prefer, however they will be under no obligation to listen to you. A bit of old fashioned persuasion is required. However, they'd be perfectly entitled to ask what your expertise in the field of trust and taxation law and investments is.

If you don't get the answers you'd like, you should however be able to ask how much (if any) commission is being made on the bond and by whom, and remind them of their obligations under the Trustee Act.

HTH, chris

dunstonh

Bonds can mean a number of things today due to the marketing departments of various companies. What sort of bonds is the executor recommending?

If the exectutor is just distributing the money and isnt going to be a trustee for the funds, then you do have scope to give the trustees your input. The executor is probably choosing this method to ensure that the money goes to the children at the right time and isnt eaten up by the parents (not suggesting your would but the executor needs to make sure).

When placing the investments, there is an obligation and liability to do what is best for the beneficiary. One of the easiest ways to ensure this is to make sure an IFA is involved as that passes most of the "best advice" liability to the IFA. As Chris suggests, you could question the executor as to what advice has been taken and why. Its usually best to discuss these things in a friendly manner first before taking any other approach.

You need to be quick though. If a trust document is written up and put in place, it could limit options.

Also, who are the trustees going to be? Usually they get a greater say on the investing as they carry the responsibility.