Trust funds for under 18s?

M7R

I hope you folks can help as I am at a bit of a dead end...

My grandad died in April and both me and my mum are executors of the will. Part of the will was leaving money to the grand kids with the rider that the ones under 18 must have their money put in a trust fund and only gain access when they are 18.

This is proving harder than we thought as the banks have said they can not do this, the solicitor said they could hold the money but then said there was no way they could stop the parents coming down and getting hold of the money... not ideal for other reasons.

so any idea where we can put the money, give the kids / kids parents a paying in book / form / letter etc, and then be done with it? (we don't want to be counter signers on the accounts as we do not see the other side of the family very much and this would make things harder)

cheers

Karl

dzug1

There is no way that you 'can be done with it' - you have been appointed trustees and are 100% responsible for whatever arrangements you make. Should you give the money to the parents to look after and they squander it, the the beneficiaries can sue YOU for their inheritance when they turn 18

I think you are asking the banks for the wrong thing - it should be possible to open an account in the name of 'J Smith will trust' with you as signatories. The interest will be pitiful though

If the sum involved is at all substantial then you should take professional financial advice (not a solicitor - many don't have much of a clue on finance). For smaller sums National Savings have some investments that can be bought in trust

Bob_Bridges

Try Cater Allen bank ( part of Santander ).
They run a current account which can be held in trust but gives no interest. You do need to get more than one person to sign cheques.

They also have done some savings products in the past which can be held in trust.

The idea you have of not needing to sign for anything gets away from the idea of it. being in trust.

Clarify what you need to do with the funds.It it is in trust you and others will need to be involved.

Good luck, Bob

thenudeone

Agree with dzug1 - you should retain responsibility for it until the children reach 18.

A couple of decades ago, my OH opened a couple of accounts at Halifax for minors who were mentioned in her mother's will (she was executor), without a problem.
Remember - if a parent opens an account for their child they are acting as trustee, so it's not uncommon.
Look for children's accounts then check the terms to see who they will accept as trustee.

Alternatively you could keep the money in the name of the executors and pay it out when they reach 18, but that's very unwieldy.

M7R

Thanks for the info, Ill have another close read of the will tonight and see what is the best route, and what is the exact wording.

cheers

Karl

M7R

thenudeone wrote: »

Agree with dzug1 - you should retain responsibility for it until the children reach 18.

A couple of decades ago, my OH opened a couple of accounts at Halifax for minors who were mentioned in her mother's will (she was executor), without a problem.
Remember - if a parent opens an account for their child they are acting as trustee, so it's not uncommon.
Look for children's accounts then check the terms to see who they will accept as trustee.

Alternatively you could keep the money in the name of the executors and pay it out when they reach 18, but that's very unwieldy.

I have been speaking to my mum, and read the will again and the the exact wording is:

"one share for my grandson " " if he attains the age of 18 years"

there is only 3 which need saving untill 18, and the longest is 3 years away in Oct, so it may just be as easy to keep the money in the trustee account untill thier 18th birthday.

We will be going round the banks again tomorrow though just encase and making sure we explaine we need a trustee account.