grandchildren left 3k by their grandma...

tracysolooney

Hi, My mother has passed away and in her will has left £3k to each of her great/grandchildren (not all mine). they are aged 18mths/10/13/15/15. she wanted them to go into a trust for them until they are 21. I have looked on the net and found it really hard to find what to do with the money.
not sure if the 10yo has a CTF, but checking that out.
any advice that could give them the biggest yield would be appreciated.
thanks
Tracy x

xylophone

What exactly does the will say? Does it actually state that the money is a gift to the children but that they are not to receive the money until they are 21? If so, then an accumulation trust
may be required. http://www.hmrc.gov.uk/trusts/types/index.htm

If, however, a will leaves an unconditional gift to a child and the only reason that he cannot receive it immediately is that he is under the age of majority and so cannot give valid receipt for the gift, then the money will be held in bare trust until the child reaches the age of 18 (16 in Scotland) when he will have the absolute right to access capital and interest.

In the case of the 13-15 year old children, the time period is perhaps rather short to consider stock market investment. If a bare trust in a bank or building society is not chosen, a cash JISA might be appropriate? The Halifax offer an excellent rate at the moment if the "registered contact" has an ISA as well. http://www.halifax.co.uk/isas/
https://www.gov.uk/junior-individual-savings-accounts/overview

The 10 year old is likely to have a CTF of one kind or another but these are currently felt to be rather restricted in choice - however, it could be used if desired? Otherwise https://forums.moneysavingexpert.com/discussion/comment/59962953#Comment_59962953 post 4 might be worth a look.

The 18 month old was born after 2 Jan 2011 so is also eligible for a JISA- as he has a long time to go before he can call for his inheritance, a stocks and shares or mixed stocks and shares/cash option might be appropriate? This might also be appropriate if the bare trust rather than JISA route is chosen ( see link).

https://www.hl.co.uk/free-guides/investing-for-children2

http://www.hl.co.uk/investment-services/junior-isa might be worth a browse.

If you are not sure what to do the solicitor who drew up the will should advise?