Help - Giving Daughter my Estate But Not all At Once

TK2007

I support my daughter via CSM and always have done. I’m hoping that I will still be around until she is 18 but I’m putting in plans due to recent health issues. Her mom is well off so my daughter would never be poor

Yorkshireman99

TK2007 wrote: »

I support my daughter via CSM and always have done. I’m hoping that I will still be around until she is 18 but I’m putting in plans due to recent health issues. Her mom is well off so my daughter would never be poor

That is good to hear. You really do need to talk to a STEP qualified solicitor. A complex trust may circumvent the 18 rule but you cannot be certain. As others have said teaching responsibility with money Is sensible. A friend’s 10 year old son is already, of his own idea has started saving for his first car. It is never too young and his two older siblings did the same. The eldesthas just reached 18 and was able to fund her first car herself. Her parents helped with the insurance though! Just one thing you speak of her mom. You do realise this is a UK only board and that might suggest you are American.

TK2007

Yes I am from the UK, Staffordshire 👍

TK2007

Me and her mom do not speak on any level so that it out of the question.

Mojisola

TK2007 wrote: »

I support my daughter via CSM and always have done.

Her mom is well off so my daughter would never be poor

Her mother's financial status isn't relevant to the fact that you are supporting your daughter financially now and that would be expected to continue if you die while she is still a minor.

Discuss it with your solicitor but you don't want to leave your estate open to a legal claim which could cost money to fight and reduce your daughter's eventual inheritance.

TK2007

Yes thanks I will discuss that and thanks for the advice 👍

TK2007

Looking at this online it states only owed or arrears CSM can be collected from the estate after death not ongoing CSM? Or maybe I’m reading it wrong?

Mojisola

Unpaid CM would be a debt and would have to be paid by the estate.

Anyone who is being financially supported by the deceased would have a claim for on-going support.

TBagpuss

You ex would not have any claim against the estate for herself, if you had a clean break order in your divorce, however, she would be able to make a claim on your daughter's behalf for support during her minority. Talk to your solicitor as it may be appropriate to build this into your will, to avoid the risk of a costly claim moving forward.

It would be possible to set up a trust to trickle feed the estate to your daughter however there are pros and cons to this - a proper discretionary trust is more expensive to administer and the tax position is different than for a bare trust, so you would need to discuss with your solicitor whether it is the best option for you - which may well depend a lot on the value of your estate and whether it is likely to be cost-effective to set up a more complex trust.