Investing 100k for children

dunstonh

Dead_keen wrote: »

There is no need for a trust. The child can be a partner in the LLP in their own right.

Why do you think it doesn't need a trust? Look at the source of the money.

Dead_keen

dunstonh wrote: »

Why do you think it doesn't need a trust?

English law.

bostonerimus

Assuming the money from a deceased parent can be put in trust with the remaining parent as a trustee and the trust taxed using the child's allowance then I'd use a heavy equity portfolio so that all the dividends/income were under the child's tax free allowance. At 18 the child could then arrange withdrawals to minimize capital gains and start moving the money to an ISA or pension fund or use it to cover expenses if necessary.

dunstonh

Dead_keen wrote: »

English law.

Which requires the money to be held in trust in the scenario given

Dead_keen

dunstonh wrote: »

Which requires the money to be held in trust in the scenario given

I don't want to play these kind of games. But let's say the money is currently held in a bank account in the parent's name for the benefit of the child. The LLP is established. The child becomes a member and the money is paid on the child's behalf to the LLP (e.g. as a capital contribution). At this stage the money is held by the LLP. No trust is required. If you think it is, then tell me what piece of legislation or case law requires there to be a trust.

dunstonh

I don't want to play these kind of games.

So, why are you recommending unsuitable options?

But let's say the money is currently held in a bank account in the parent's name for the benefit of the child.

According to the first post, the money has not yet been received. So, the money isor will soon be in the account of the executor. The executor should not distribute the money to the parent as the money does not belong to the parent.

If you think it is, then tell me what piece of legislation or case law requires there to be a trust.

I suggest you look up the intestacy rules for children under 18. Particularly the part that says:
Children do not receive their inheritance immediately. They receive it when they:

reach the age of 18, or
marry or form a civil partnership under this age.
Until then, trustees manage the inheritance on their behalf.

Dead_keen

dunstonh wrote: »

I suggest you look up the intestacy rules for children under 18. Particularly the part that says:
Children do not receive their inheritance immediately. They receive it when they:

reach the age of 18, or
marry or form a civil partnership under this age.
Until then, trustees manage the inheritance on their behalf.

I missed the intestacy bit. Sorry. My bad.

In terms of an LLP to hold property for under 18 children, they work well.

dunstonh

Dead_keen wrote: »

I missed the intestacy bit. Sorry. My bad.

In terms of an LLP to hold property for under 18 children, they work well.

No problem. You were not the first one to do so on the thread. Enjoy your Saturday night