Inheritance due to nephew in Aus

silver7

Would anyone be able to give me any advise, my mother passed away earlier this year and has left money to my Australian nephew who is 15, this money is not to be accessed until he is age 25. I am exector of the will and I now have everything sorted out money wise, I'm not happy about transferring this money to my sister-in-law(my brother passed away in 2006) and am unsure what to do. Can I invest it for him? where? what/ How? Any pointers, advise would be much appreciated, thanks in advance.

xylophone

In view of the terms of the will, (the beneficiary cannot inherit until his 25th birthday) it seems to me (no expert) that this will have to be held in a trust by you as executor (in the absence of a named trustee)?
http://www.hmrc.gov.uk/trusts/types/discretionary-accum.htm for tax treatment.

http://www.hmrc.gov.uk/manuals/intmanual/intm367700.htm

In view of the fact that the child does not become entitled to the capital until he is 25, you might wish to use a stock market based investment?
http://www2.skandia.co.uk/Documents/Literature%20Library/SLAC/Generic%20and%20Intermediary/SK6867_Guide_to_investments_for_trustees.pdf might be of interest.

You might wish to seek professional advice, especially if a considerable sum is involved?

mulronie

If the will designates him as a beneficiary at age 25, he should receive the money at age 25 - you'd be failing in your duties as executor to give the money to his mother now.

The way this is handled would be through a trust structure - I'd expect any will drafted by a solicitor to specify how this trust should operate, things like:

- who are the trustees
- what can the trust invest in
- what can the funds be used for

If you have no idea how to go about this, or the will does not make the above specifications, you will need professional advice.

silver7

Many thanks for the above info will start having a deeper look into this.