What to do with £10k inheritance left to 17 year old

Spanishomelette

My sons have each been left £10,000 by an elderly friend of their Grandma. While one of them is 19 and able to invest his money as he wishes, the other is 17. My mother and I are executors of the estate and I have been told that it isn't always necessary to set up a trust for such bequests, depending on the amount left (which they very helpfully couldn't really put a figure on!).

My question is, would it be sufficient to put the funds into Premium Bonds for my son until he is fully entitled to them at age 18, or does a trust need to be set up? As payment of the bequest is dependent upon the sale of property, which obviously may take several months, it seems daft (to me ) to go to the trouble and expense of getting a trust set up for what may be only a matter of a very few months until he will be 18.

xylophone

It would appear from what you have said that these gifts are unconditional and without contingency? The only reason that your son cannot take immediate possession of the bequest is that by reason of his minority, he cannot give valid receipt for the funds?

If so, you and the other executor will be "bare trustees" for your son during what remains of his minority.

Presumably an executors' account has been opened to receive monies due to the estate. Your minor child's bequest could be held in this account for the few weeks that remain of his minority.

Or you and his grandmother as Trustees could take a decision to release the cash or part of it to him before his 18th birthday - does he have a JISA?

What are his plans for the money?

Spanishomelette

Thank you Xylophone. You are correct in the gifts being unconditional and without contingency.

He doesn't have a JISA. He has had an apprenticeship since he left school last summer and is already a dedicated saver (though only in Premium Bonds at the moment), so I think we will have a look round to weigh up his options.

I just wasn't sure if we had to set up a trust formally or, as you have said, manage the money ourselves until he is 18.

xylophone

He doesn't have a JISA.

A pity - he could have been getting a reasonable return on his cash.

https://www.coventrybuildingsociety.co.uk/consumer/help/savings/isas/junior-isa.html

The LISA may be worth investigating once he turns 18.

http://www.skipton.co.uk/savings/isas/lifetime-isa