Need to comply with Will...

helptoyou

atush wrote: »

We don't know the details of the will, but I agree with statements above the money should have been invested (or a portion of it) rather than left to wither on the vine of cash.

you need to consult a professional about investing this for the remaining term in a place that will accept trust accounts. Don't leave it in Premium bonds, or cash.

For instance, one of the investment trusts I invest money in for my 3 boys is up over 18% this year to date alone. Whereas your son's holding in PBs is up 20% over 9 years which is just over 2% per year and inflation over that period I am sure was more therefore this money is worth less than when left to him.

So, consult a professional IFA and get this money earning better. at least the lions share of it.

How do you know the sons holding in PBS is up 20% over 9 years I cant see any original sum mentioned .

Whilst I agree I would not leave it all in premium bonds , whos to say a large win is not around the corner.

I totally agree the funds could be earning more but see previous posts.

antrobus

Not_Radio2 wrote: »

... As my son cannot have access to the original money until he is 25, ..

Saunders v Vautier (1841) - if you son asks you for the money when he's 18, you have to let him have it.

But check that with a real lawyer.

dunstonh

Whilst I agree I would not leave it all in premium bonds , whos to say a large win is not around the corner.

I am not sure a judge would consider gambling on such an unlikely event a prudent or justifiable action by the trustee.

It is not about earning more. It is about the legal responsibility to act in the best interests of the beneficiary.

atush

helptoyou wrote: »

How do you know the sons holding in PBS is up 20% over 9 years I cant see any original sum mentioned .

Whilst I agree I would not leave it all in premium bonds , whos to say a large win is not around the corner.

I totally agree the funds could be earning more but see previous posts.

Sorry I based it on inheriting 25K but it doesn't say that. as you point out.

But my original point is that the money does not belong in PBs, or at least not all of it. When I inherited some money a while back, I bought myself, OH and the 3 boys each 100 worth of PBs. This is all I would personally invest there.

I am not really interested in the whole

whos to say a large win is not around the corner.

bit, that is just hopeful nonsense. And gambling with someone else's money.

Basically, if the OP is a trustee, they aren't doing their job very well so far.

helptoyou

dunstonh wrote: »

I am not sure a judge would consider gambling on such an unlikely event a prudent or justifiable action by the trustee.

It is not about earning more. It is about the legal responsibility to act in the best interests of the beneficiary.

I agree I would not hold in premium bonds , But holding it as such is not gambling !!! there is no consideration you dont loose any stake.

See my previous posts re trustees requirements plus as I keep saying without seeing the terms of the will how can you help the OP
further

dunstonh

But holding it as such is not gambling !

It is. Premium Bonds pay not interest and have no growth potential. Instead you are put into a lottery where you are effectively gambling the income/interest/growth in exchange for a chance at winning a prize.

there is no consideration you dont loose any stake.

The lack of interest/growth/income is the stake.

See my previous posts re trustees requirements plus as I keep saying without seeing the terms of the will how can you help the OP

Your views on trustees requirements is wrong though. You seem to think they have no legal responsibility.

Not_Radio2

Thanks everyone for your responses.
The Will reads:- "The sum of £7,500 to each of the following on their respectively attaining the age of 25 year or sooner subject to the agreement of my executrices and trustees" and names my son along with others. Then further down the Will "Upon trust to pay pecuniary legacies of £5000 to each of..." and again my son is named here.
The Solicitor that dealt with obtaining Probate distributed the funds. My sons share was made payable to me - and I bought on my sons behalf Premium Bonds. They are in his name, but as he is under 16 all the paperwork comes through addressed to me from NS. He has now reached the holding limit for Premium Bonds and I am looking for help of the forum as to where I should pay the future wins into. The previous wins were simply re-invested automatically in Premium Bonds, but the latest win has been made payable to me by NS.
Obviously, I could simply pay this into my own account and in turn pay the same amount into a new account somewhere for my son, but I wanted to keep things 'simple' and thought a joint account somewhere with just his Premium Bond wins going into the new account - but I am confused...

dunstonh

My sons share was made payable to me

Which was wrong but frequently happens.

He has now reached the holding limit for Premium Bonds and I am looking for help of the forum as to where I should pay the future wins into.

As has been said, what you are doing is almost certainly not in the best interests of the beneficiary and you are not carrying out your duties as a trustee.

Obviously, I could simply pay this into my own account and in turn pay the same amount into a new account somewhere for my son

You could but you have legal issues there.