Childrens Inheritance and Benefits

mark24c

Hi
Hoping someone can help my friends father who has recently been diagnosed with cancer is wanting to leave money to her children, the children are 12 and 14.
Obviously they are too young to have control of the money if it is left to them by way of a discretionary trust with the mother having contol of the account is this counted as the mothers savings for benefit purposes.
What is the best way to set this up?


Thanks

DX2

mark24c wrote: »

Hi
Hoping someone can help my friends father who has recently been diagnosed with cancer is wanting to leave money to her children, the children are 12 and 14.
Obviously they are too young to have control of the money if it is left to them by way of a discretionary trust with the mother having contol of the account is this counted as the mothers savings for benefit purposes.
What is the best way to set this up?


Thanks

It will not be counted as savings for benefit purposes, the money will be held in trust until the children are old enough in Scotland this is 16, I think it may be 18 in England unless otherwise stipulated.

mark24c

What if the mother is using money from the account to spend for the benefit of the children?

DX2

mark24c wrote: »

What if the mother is using money from the account to spend for the benefit of the children?

If the money is not held in trust until the children are old enough to receive this money, then yes it will be taken into account regarding her benefits.

mark24c

The money will be held in trust for the children with the mother as the trustee having control of the account and using monies for benefit of the children - school trips etc

DX2

mark24c wrote: »

The money will be held in trust for the children with the mother as the trustee having control of the account and using monies for benefit of the children - school trips etc

This will still have to be declared I'm afraid.

mark24c

What if a family friend is the trustee and not the mother and monies are still spent on the children?

DX2

mark24c wrote: »

What if a family friend is the trustee and not the mother and monies are still spent on the children?

I can't advise you on this situation as I haven't had any personal experience of the above situation, sorry

cabbage

It might be best to get some legal advice on this. Your friend's dad needs to put in place some sort of provision of maintenance for his children that will pay out until they are 18. He might want to think about re doing his Will too.

mark24c

cabbage wrote: »

It might be best to get some legal advice on this. Your friend's dad needs to put in place some sort of provision of maintenance for his children that will pay out until they are 18. He might want to think about re doing his Will too.

Not his children hes the grandfather

sp1987

Is there another child (so an aunt or uncle of the children) who could be a trustworthy trustee? Or can the grandmother be trustee if she is still alive?

If the mother cannot access the money/it isn't available for her to use, then surely it won't be counted for benefit purposes? Maybe someone can clarify.