Inheritance for under 18

rachchel

Im not sure if this is even the correct section so please excuse if its not.

What do you do if you have distribute inheretance to a child of under 18 (17). Long story but we do not really have any relationship with this boy. We are confused at how to put the money into trust for this child so any help really appriciated on links to a site that could be of use.

Many thanks in advance.

atush

Why do you have the money? Are you an executor? Do you have his address and phone number? What is his relationship to the deceased? Was the money to be given over immediately or at age 18? How many months til he is 18?

I would expect you would open an acct as a Bare trust with the child as designee and you perhaps as exectuor. Then send him a check for the full amt at his 18th birthday? You could also contact his parentsand ask that they handle this part (unless you have reason to beleive they would take the money for themselves?).

xylophone

As he is seventeen there could be a problem re tax if the money is held in a bare trust for a year.http://www.hmrc.gov.uk/tdsi/children.htm and you have no knowledge of his tax affairs. http://www.hmrc.gov.uk/trusts/beneficiaries-pay-reclaim.htm

See also http://www.hmrc.gov.uk/trusts/types/bare.htm
It might be a good idea to contact the beneficiary's parents? (I take it that the testator was not the child's parent or stepparent.) (http://www.hmrc.gov.uk/cto/customerguide/customer-guide-11-4.htm

sleepless_saver

Is the child in England? In Scotland, the age when a person can inherit directly is 16 rather then 18 as in England.

rachchel

My mother is the executor of the will. He is her nephew. Its a complicated story but as his father (mums brother) died 13 years ago he is intitled to his share as the will was never changed to remove his deceased fathers name from it.

When his father died there was major complications with the boys mother and family. They were asking for his money and bank details the morning after he died :mad:. The only thing he had was a house which was insured for death which the boys mother inherited even though they had split up. She sold this for £8k cash !!! which was wasted on drugs and treating friends to holidays Grrrrrr. So this is part of the reasons why we have no contact with them nor do we wish to now. Was hoping there was a way of making sure he gets what he is entitled to with no or very little communications with them.
We are in Wales.

atush

How many months until he is 18?

Were his mother and father married, or should the house have gone to the children? If she sold it for her benefit and it was for them, I can see why you would be worried about the money. It might be worth a trip down to the CAB but I am thinking you may have to give the money to the boy in question (in the form of a check in his name). But if there is past evidence his mother would take it for drugs then you might have some options but you need to go to CAB for some free advice before you go calling social services or anything.

xylophone

When does the boy become 18?

I am wondering whether the answer might be for your mother to open a "re" account for him (see links) in a one year bond where the payment of interest will occur a couple of months after his eighteenth birthday- she won't be able to complete R85 (see links for explanation) but she must transfer the account into his name on his 18th and he can complete an R85 for himself?Otherwise, and especially if the sum is substantial, consult a solicitor?

opinions4u

My mother is the executor of the will. He is her nephew. Its a complicated story but as his father (mums brother) died 13 years ago he is intitled to his share as the will was never changed to remove his deceased fathers name from it.

Does the will explicity state this entitlement for Mum's nephew? Or does it just leave the money to her brother with no mention of what to do should he pre-decease the person who's will it is?

I'm concerned that your Mum may not be following correct legal process and could end up with other beneficiaries suing her for making payments outside the terms of the will.

It may be best to get legal advice.

thenudeone

Someone under 18 cannot give proper receipt, which means that if the executors were to give them the money now; the beneficiary can turn up when they turn 18 and demand the same money again! And they would win in court.

So the executor needs to keep control of it. Don't trust anyone else with this because the executor is legally responsible for ensuring it gets to the right person. The executor can open an account any many banks or building societies to keep the funds until the beneficiary turns 18.

Something like this might be suitable: http://www.scottishwidows.co.uk/bank/savings/trust_fund_intro.html

xylophone

opinions4u wrote: »

Does the will explicity state this entitlement for Mum's nephew? Or does it just leave the money to her brother with no mention of what to do should he pre-decease the person who's will it is?

I'm concerned that your Mum may not be following correct legal process and could end up with other beneficiaries suing her for making payments outside the terms of the will.

It may be best to get legal advice.

Might be covered by S33 of the Wills Act 1837?

Gifts to children
Where the testator makes a gift to one of his children or a remoter descendant, and that child dies before the testator, the gift will not lapse so long as the deceased descendant himself leaves children surviving at the death of the testator. The surviving descendants receive the gift (s.33). The rule also applies to illegitimate children (s.33(4)(a)) and a person conceived before the death of the testator is deemed to have been living at the testator's death (s.33(4)(b)).

rachchel

He will turn 18 in Feb 2013 so only just over a year.
She was told that he would be entitled to it by the solicitor who was holding the will for my gran . Aparently as her brother died his share goes to his son as there is no wording in the will to stop it.