Nice People Thread Part 9 - and so it continues

lostinrates

vivatifosi wrote: »

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.

Viva, when he's a bit older give me a nudge, DH would be only to happy to help in any way he can. He's good like that.

vivatifosi

Thanks lir. Really appreciate it. I was on a tablet earlier so sorry about spelling. I now understand what you have to put up with. Everytime I tried to type pigeonholing it corrected it to bludgeon holing... whatever that means! I tried to say damn, my computer is auto correcting me and it said Damon, my computer is auto correcting me. GGRRRRR!!!

silvercar

GDB2222 wrote: »

It's a bare 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.

But the cheques have been written to me (and my sister), so opening an account would look to the revenue like it is our money.

I think the thinking behind it was that at 25 they would be less likely to put it on the 3pm at Cheltenham! DS1 has less than 2 years to wait, so probably not worth putting it in a fund. DS2 has over 5 years to wait, so maybe his share should be invested.

silvercar

LydiaJ wrote: »

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]

I have friends with kids looking for training contracts and it is a nightmare. There are far more law graduates than training contracts.

GDB2222

LydiaJ wrote: »

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.

Although I can't be 100% sure without seeing the will, I am 99.9% sure that there *is* a trust, with SC as trustee. The trust was established by the will of the deceased. It's an accumulation and maintenance trust. SC really needs a copy of the will.

You might want to look here. http://www.farrer.co.uk/Documents/Accumulation%20and%20Maintenance%20Trusts.PDF

GDB2222

silvercar wrote: »

But the cheques have been written to me (and my sister), so opening an account would look to the revenue like it is our money.

I think the thinking behind it was that at 25 they would be less likely to put it on the 3pm at Cheltenham! DS1 has less than 2 years to wait, so probably not worth putting it in a fund. DS2 has over 5 years to wait, so maybe his share should be invested.

It doesn't matter that the cheque is in your name. It's been given to you as trustee.

silvercar

LydiaJ wrote: »

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.

Thank you! As for being run over by a bus, well they would get the money anyway. In fact there is another part of the will which gives a chunk of money to them with me getting the income during my lifetime. Goodness knows why as they would get it eventually.

silvercar

GDB2222 wrote: »

It doesn't matter that the cheque is in your name. It's been given to you as trustee.

So assuming I just bank it in a saving account, who accounts for the interest to the revenue?

silvercar

GDB2222 wrote: »

Although I can't be 100% sure without seeing the will, I am 99.9% sure that there *is* a trust, with SC as trustee. The trust was established by the will of the deceased. It's an accumulation and maintenance trust. SC really needs a copy of the will.

You might want to look here. http://www.farrer.co.uk/Documents/Accumulation%20and%20Maintenance%20Trusts.PDF

"....the sum of X to DS1, DS2,... this amount to be held individually in trust for each of them until they attain the age of 25 years and I declare that my trustees shall pay such sums immediately following my death and the receipt of the parent or guardian of any grandchild under the age of 18 shall be a full and complete discharge to my trustees in respect of the gifts contained in this sub-clause"

I am puzzled why 18 and 25 are both mentioned, but that is a side issue.

lostinrates

Potentially choosing names for a rescue cat this weekend. If it gets on with other cats.

Its not going to be an easy one, but I think I have done it.