Nice People Thread Part 9 - and so it continues

silvercar

Inheritance/ wills.

boys have been left some money, but the will specifies that they can't get their hands on it until they are 25. So the solicitor has sent me a cheque for the full amount. So it has to go in an account in my name and then I am just trusted to pay over when they come of age.

So who accounts to the tax man for the interest?

michaels

Could you carry out your duties by opening accounts in their names but with only you knowing about them and thus having access?

silvercar

michaels wrote: »

Could you carry out your duties by opening accounts in their names but with only you knowing about them and thus having access?

Legally, I don't know - but I guess so.

Problem then is that there could be a point in time when they needed to claim unemployment benefit or help with prescriptions when they are students etc and this money would take them over the threshold - so it really shouldn't be in their name until they can access it.

As they are already 18+ they are adults so putting anything in their name gives them sole access. They also may possibly need to fill in a tax return and younger one is a student so would need to complete R85 or claim tax on interest back if in his name. (Obviously online is not detectable who is accessing but I have been caught with santander requiring a phone call for something, which was a pain).

My sister has identical issue but worse because her children are young and any interest would count as hers if it amounts to £100+.

bugslet

@GDBthat list of teenage mannerisms/habits brought back memories:o, never would I have done or said any of those things.....

Spirit wrote: »

At work I had my 360 feedback today. I feel very happy with it/me on the whole . What I need to work on / recognise is that my enthusiasm and persuasive ways can overwhelm others..aka that I can overtalk/squish other's ideas:o.

Tomorrow my team and I spend the morning 'learning' from our individual and collective strengths...and areas/techniques to impove our influencing skills.

Spirit wrote: »

It is OK, everyone of my "raters" is constructive and professional. They included my staff, boss and peers.

No one wrote "you're depriving a village of it's idiot" so all is well.

One of the few joys of being the boss is that no-one is going to review you. Nor have I ever had one when in employment. It's fair to say that I wouldn't take it well and probably spend the following year festering.

lostinrates wrote: »

Le smoking.

I think a lot of smoking is education and hope rather than class perhaps?

Its not uncommon to be v. Posh and a smoker. I'd agree with chewy its the hand wringers in the middle who are the most different from working and v, posh who have some similarities. Most of us are seeming in the middle now really any way ( socio wise, if not econo wise)

My Mother ( well manual and from the North East, which looking at the link means she was guaranteed to smoke!), used to smoke about 40 a day when I was a child. Once, aged about 4, I asked her for a cigarette, which she duly lit and told me to take a deep breath. Once I got to 14 and tried again, all I could remember was rolling around on the rug, coughing, as my mother calmly removed the cigarette so that it didn't burn the rug and left me to it. Put me off for life!

LydiaJ

silvercar wrote: »

Inheritance/ wills.

boys have been left some money, but the will specifies that they can't get their hands on it until they are 25. So the solicitor has sent me a cheque for the full amount. So it has to go in an account in my name and then I am just trusted to pay over when they come of age.

So who accounts to the tax man for the interest?

I think you need legal advice about this. I think it's actually a bit dodgy that the money's just been handed to you. What if you were to be run over by a bus next week - there'd be no evidence that that money was theirs rather than yours. I suspect that what probably ought to happen is that a trust should be set up with you as the trustee. I'mpretty sure that money in a trust of which your boys will be the beneficiaries in the future doesn't count as their capital for benefits purposes (although check that) and the income certainly wouldn't be taxed as your income although I'm not sure exactly how it would be taxed.

With interest rates as low as they are, I imagine that making sure they don't own the capital will make more difference than trying to get the interest tax-free, and in any case if you put it in their names then as you say legally they can access it which i think would put you in breach of the terms of the will.

I'll try to get some more info from my favourite probate solicitor (my big brother) and get back to you.

vivatifosi

Lydia can I please ask a favour of your big bro? My nephew is 11 and wants to be a solicitor when he is older, but none of us are even vaguely legal or have anyone legal in our circle. Just wondered if there's any advice he would give to him at that age. He is a bright kid. With exception of Dh most of our male fellows work in trades, great if I ever need a mechanic, but not for giving advice to young trail blazers.

Hopefully you getgist of what I am saying, tablet has been busy auto correcting.

Thanks and sorry for imposition, plus if anyone else wants to add anything please chip in...

lostinrates

vivatifosi wrote: »

Lydia can I please ask a favour of your big bro? My nephew is 11 and wants to be a solicitor when he is older, but none of us are even vaguely legal or have anyone legal in our circle. Just wondered if there's any advice he would give to him at that age. He is a bright kid. With exception of Dh most of our male fellows work in trades, great if I ever need a mechanic, but not for giving advice to young trail blazers.

Hopefully you getgist of what I am saying, tablet has been busy auto correcting.

Thanks and sorry for imposition, plus if anyone else wants to add anything please chip in...

Read 'traditional ' subjects at gcse and a level. Have a broad and varied other interest life. Keep your nose cleaner than clean, and do some good extra curriculars for a mixture of pleasure and future cv.


What a kid.....do many think sensibly at eleven?

LydiaJ

vivatifosi wrote: »

Lydia can I please ask a favour of your big bro? My nephew is 11 and wants to be a solicitor when he is older, but none of us are even vaguely legal or have anyone legal in our circle. Just wondered if there's any advice he would give to him at that age. He is a bright kid. With exception of Dh most of our male fellows work in trades, great if I ever need a mechanic, but not for giving advice to young trail blazers.

Hopefully you getgist of what I am saying, tablet has been busy auto correcting.

Thanks and sorry for imposition, plus if anyone else wants to add anything please chip in...

He's mid-50s. When he got into it, all you had to do was get a good degree in any subject, 2 years at law school and straight into a paid training contract job. I suspect it's not like that any more. I'll ask him, but someone doing wills and probate in a sedate firm in a small town may not be the best source of info. Maybe foundinrates could also advise.

[X-posted with lir]

GDB2222

silvercar wrote: »

Inheritance/ wills.

boys have been left some money, but the will specifies that they can't get their hands on it until they are 25. So the solicitor has sent me a cheque for the full amount. So it has to go in an account in my name and then I am just trusted to pay over when they come of age.

So who accounts to the tax man for the interest?

It's an accumulation and maintenance trust (probably, but it depends a bit what's in the will). The interest is the boys', and if there's enough of it, they'll need to do a tax return. In practice, assuming it's taxed at source by the bank, HMRC probably won't need a tax return.

Of coursee, that begs the question whether you ought to stick it in the bank, in say an equity index tracker fund, or on the 3pm at Cheltenham. The bank means steady attrition by inflation at the moment.



"My sister has identical issue but worse because her children are young and any interest would count as hers if it amounts to £100+."

No, not unless she gave them the money. It's the kids' money even though under 18.



"Problem then is that there could be a point in time when they needed to claim unemployment benefit or help with prescriptions when they are students etc and this money would take them over the threshold - so it really shouldn't be in their name until they can access it."

I doubt that helps, though I am not an expert on the labyrinthine benefit laws. Even if they don't have access right now, they (at the least) own an entitlement to receive the money at age 25, which has a value.

vivatifosi

lostinrates wrote: »

Read 'traditional ' subjects at gcse and a level. Have a broad and varied other interest life. Keep your nose cleaner than clean, and do some good extra curriculars for a mixture of pleasure and future cv.


What a kid.....do many think sensibly at eleven?

He is a lovely boy. He is very concerned about right and wrong and idealistic. He comes out with wisdom beyond his age, such as telling us all that he believes in gay rights and then articulating why he believes that so want to nurture that while not pigeonhole ing.