Money inherited by a child

G6JNS

TBagpuss wrote: »

It my be worth taking some advice from a solicitor - not necessarily to get them to administer the trust but to advise about whether it is possible to change it, and what you can, and can't do.

It should normally be possible to substitute a new trustee instead of your father if he no longer wants to be involved

A lot will depend on how the trust is worded - once your daughter is 18 it may be possible to bring the trust to an end.

Very unlikely without a court order and for good reason.

getmore4less

The trust exists the will set it up(no special actions needed)

Might be worth some more research in how much scope the trustees have there may be simple options(like create a loan that just never get repaid and gets written off at 27).

No one polices this stuff( tax man likes to poke around where there is tax involved).

The only person that can take any action will be the beneficiary, their parents while a minor, or a trustee against the another.
(makes the just give her the money quite low risk)

The main problem is where to keep the asset, most investments for children become theirs at 16/18. so you have to hold the assets in the names of the trustees or just a account in your own name.
(The issue then becomes keeping it separate from your own tax affairs)

Trustees are supposed to take financial advise but for this sort of amount it is probably not worth the costs

Bottom like is will your daughter sue you for not investing the money properly(usually very low risk).



A DOV could not have been done at the time, child beneficiaries can agree the change.

konark

Not on expert on trusts but I remember reading somewhere that you can't have a trust that delays payment above 25 years old.

DandelionPatrol

konark wrote: »

Not on expert on trusts but I remember reading somewhere that you can't have a trust that delays payment above 25 years old.

Could have used almost the same words myself. Although I think you can have such a trust but it is not bound by any age specified in the will above 25.

Keep_pedalling

I believe under English law that adult beneficiaries of a trust can demand that that trustees terminate the trust and transfer all assets to them.

Your daughter could therefore request this once she reaches her 18th birthday. It does not appear that it would be nessasary for a court to make this ruling.

https://en.m.wikipedia.org/wiki/Saunders_v_Vautier

TBagpuss

Keep_pedalling wrote: »

I believe under English law that adult beneficiaries of a trust can demand that that trustees terminate the trust and transfer all assets to them.

Your daughter could therefore request this once she reaches her 18th birthday. It does not appear that it would be nessasary for a court to make this ruling.

https://en.m.wikipedia.org/wiki/Saunders_v_Vautier

Yes. It does, of course, depend on how the trust is worded, and what powers are given to the trustees.
Is there a residuary beneficary who would be entitled to the money f your daughter didn't survive until she was 27?

G6JNS

Keep_pedalling wrote: »

I believe under English law that adult beneficiaries of a trust can demand that that trustees terminate the trust and transfer all assets to them.

Your daughter could therefore request this once she reaches her 18th birthday. It does not appear that it would be nessasary for a court to make this ruling.

https://en.m.wikipedia.org/wiki/Saunders_v_Vautier

It is considerably more complex than that. It depends on the terms of the trust. You need to remember that trust law is very complex and not a area amateurs are in a position to advise on.

bouncydog1

In a similar situation my husband and I opened an account in the name of Mr and Mrs Smith re: Miss Smith. Once she got to 18 we added here as a signatory to the account, but two signatories are needed to get the funds released.

I know that this doesn't get over the Trust point (sorry a bit dim on Trusts) but might help re: the bank account. We simply shopped around for the best rate, filled in the forms each time and that's it. Once she gets to 18 you could maybe look at joint account options with both signatures to release e.g. you and your daughter (not sure if that's possible under the terms of the will, but that would stop funds being released until she is 27.