I'm the Executor of a will - need advice on investing for a minor...

Perelandra

Whilst I cannot add to the excellent suggestions that have already been made above:

In my will, I have left instructions very similar to the suggestions above, for my nephew (in this case, to give him access at 30). So that's another vote of confidence that it's the right way to go!

Phamous

Thank you all!

I had a long chat with a solicitor yesterday... She said my only legal obligations, dictated by the terms of the will and the law in general, are to:

1. Invest her money (not in a trust if we decided not to)
2. Any fees payable (legal or IFA) would come from her bequest
3. We are able to give her some funds, at our discretion, at any time for education and maintenance
4. I am allowed to retire as a trustee at any time and appoint another trustee (her mum is terrible with money so I probably won't do that - tempting as it is to have this responsibility off my shoulders!)
5. At 25, make sure she is given the remaining capital and any interest or dividends.

Pretty simple, legally.

Off the record, she suggested looking into National Savings, possibly bonds.

xylophone

I am not an expert but I am puzzled by the advice above.

not in a trust if we decided not to)

You do not state the precise terms of the will but it would seem that in itself it has created a trust which is not a bare trust?



http://www.thewillsite.co.uk/legal_wills_uk.php

"Q: Can children under 18 inherit?
A: Children cannot inherit until they reach the age of 18; below this age, the funds are held in Trust. If you think 18 is too young for your children to inherit a large sum of money, within a Will, you can specify that they do not receive the capital sum until a later age. They will, however, be entitled to receive any income from the trust fund as soon as they reach 18. Apart from this, the Trustees decide what income and/or capital can be used for the benefit of the children e.g. school fees."

http://www.dunham-mccarthy.co.uk/children-and-wills/

"Without specifying the details statutory Trusts provide a right to all the income from the inheritance on attaining the age of 18 years even if you have declared that the child cannot have the capital until some greater age. Furthermore the Trustees have power to make an advance of one half the capital to the child prior to the specified age. The Trustees also have power to use the interest earned on any investments for the child's benefit maintenance or education."

And what tax treatment will apply to the income?

Is it worth a call to HMRC?