Trust fund to age 25

rick@findthatfuchsia

Any advice would be appreciated.

My mother left circa £2k to my 16 year old nephew to be held in trust until he is aged 25.

Any suggestion where/whom I can do this with would be appreciated?

xylophone

Does the will say "when he turns 25" or "if" he reaches 25?

If when, it is an absolute gift - it can be held in bare trust but he would have the right to call for transfer of the cash when he reaches 18 (16 in Scotland).

If the gift is absolute then it cannot be in a discretionary trust as the Trustee has no discretion on how or when the gift is to be made.

http://www.prescient-financial.com/docs/Bare%20trust%20returns.pdf

You might be able to open a five year bond with you as trustee for him and think again on maturity?

http://www.prescient-financial.com/docs/Bare%20trust%20returns.pdf

Westie983

I think you need to find a solicitor to write up the trust, but could find its quite costly, more then the 2k your nephew has been gifted.

https://www.gov.uk/trusts-taxes/overview

xylophone

Does the will say "when he turns 25" or "if" he reaches 25?

See also https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem6201

https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem1563

EdGasket

Just stick it in NS&I savings account and give it to him when he's 25; no need to faff about for just £2K.

rick@findthatfuchsia

Will says when he is 25.

I like the idea of the 5 year bond.

Thanks