Childrens' inheritance - ideas please

danncus

Mother in law has left an amount of money for grandchildren ( 3 children, oldest 16yrs old) with added caveat, of any others born in next 4 years equally split.

what and where to hold the money and in whose name?

amount is approx £120,000

thanks

kidmugsy

I suppose there might be a case for doing a deed of variation on her will to set up a trust on those terms, with her children as the trustees. But I write as an amateur.

dzug1

For that sort of sum you are as near as obliged by the Trustee Investment Acts to take professional advice. I think 'appropriate advice' is the wording used.

If you make the decisions yourself and screw up your kids can sue you once they are 18

And it will involve a trust - no need for a DoV - if the will doesn't name a trustee/s the executors have the power either to be or to appoint trustees.

xylophone

deed of variation on her will

- very difficult with minor beneficiaries http://www.geldards.com/G9_live_resources/document/Deeds_of_Variation.pdf


You will need to set up a trust.
http://www.hmrc.gov.uk/trusts/types/index.htm

See a solicitor experienced in wills and trusts
http://www.step.org/system_pages/call_to_action_navigation/search_for_a_step_member.aspx?link=header-menu

danncus

thanks all for info, the legal stuff apart, where would you suggest the money should reside for 4 years?

xylophone

thanks all for info, the legal stuff apart, where would you suggest the money should reside for 4 years?

This is rather a poser as four years is rather too short a time frame for stock market based investment?


You might need to find a building society that will allow a fixed rate bond to be held in a Trustee account -" Mr A Danncus and Mrs B Danncus Trustees of XYZ Will Trust".

Remember that you will need to have regard to the tax situation.
Your solicitor should advise.

danncus

many thanks, what rates would I expect to see on this type of account?

xylophone

many thanks, what rates would I expect to see on this type of account?

It would be the rate offered on the particular account - the important consideration would be whether the financial organisation allowed it to be held by trustees.

And don't forget the tax rules relating to trusts.