Childs Inheritance Investment Question 30 October 2014 at 10:24PM in Savings & investments 1 reply 711 views

dieseler

My child is due to inherit some cash from her grandparent, approx £35,000.
Being under 18yrs old an investment company was appointed as an executor along with her other parent (whom I am separated from).
On separation I bought a house for us to live in (as my child lives with me full time) and I would like to know if it would be legally allowable for my child's money to be invested in my property. If so, would there be any tax implications or other implications for myself or my child.

xylophone

If your child has an absolute right to this money now and the only reason that she cannot have it now is that as a minor she cannot give good receipt, then the money will be invested for her in bare trust until she is 18 - if no trustees have been named, then the executors will fulfil this role.

http://www.step.org/minor-note

http://www.hmrc.gov.uk/trusts/types/bare.htm

http://www.osborneclarke.com/connected-insights/publications/the-powers-and-duties-of-bare-trustees/

It does not seem to me that your child's money can be invested in your house.