£25K inheritance x 3

Old_Timer

My 3 kids are in line to inherit approx £25,000 each from a recently deceased relative. The will stipulates that they should not receive the money until they are 24. So, the money needs to be stashed away in the best income generating accounts/trusts/bonds/whatever until they reach that age, that means for 6 years, 8 years and 12 years.

Does anyone have any advice on the best investment/savings vehicle for such funds.

Thanks

getmore4less

You need to check the tax situation with trusts for children, I think there are issues if they go over age 18.

You might also have to get financial advice to meet the legal requirements allthough I think this changes if the trustees are parents.

I think you also need to check exactly what sort of trust is being set up if you are to become the trustee, what does the will say about this.


I am going to be looking into this in more detail soon.

dzug1

Unless the will specifies as to how the money is to be invested, you would be well advised to get proper advice ('appropriate advice' is the actual wording in the Trustee Invesment Acts I think). I doubt if random opinions on an internet forum constitutes that.

And 'income generating' may not be the way to go, not for the whole lot anyway.

Remember the kids can sue the trustees if things go wrong - and proper advice is a defence to this.

And yes - inheriting after age 18 is a recipe for disaster taxwise. But you are stuck with it.

MarieAAP

Hi

I don't have any advice on the how save it / invest it, but I do have a diff type of NB.

That it does seem like a long term for inheritence (till 24!), with out any clauses of what the money could be used for.

I would suggest double checking for any small print e.g. for educational uses e.g. for uni / travelling, which was what mine set up as - conditional causes, I think it was called.

M