Beneficiary Account

Lyndsey0506

Hi I’m looking for some advice please if anyone can help.
My husband a I are executors of my father in laws will. One of his grandchildren (not our child) has been included in the will to receive a substantial amount of money, but he requested in his will that she had no access to the money until she is 21.
Can anyone suggest an account that meets these needs. I’ve spoken to several banks who just say they can only hold the money until the child is 18 but we have to carry out his wishes. The will has caused some animosity and we are struggling to sort this out. We just want to put the money into an account so that she receives a statement once a year and can access the money when she is 21.
Thank you

Keep_pedalling

In reality the wish is going to be overridden by the beneficiaries right to their full inheritance when they reach 18 or 16 if falling under Scottish law.

Lyndsey0506

Ok thank you this would explain the problems we are having with opening the account. We are at a bit of a loss.

Keep_pedalling

Lyndsey0506 wrote: »

Ok thank you this would explain the problems we are having with opening the account. We are at a bit of a loss.

If I was in your shoes I would simply deposit the money somewhere nice and safe which allows you to open a trust account, like NS&I. I would also explain to her that although she is entitled to her inheritance her GF wanted her to have the money when she reached 21. Encourage her to save for the future by doing things like open a LISA as a starting point to eventually buying a place of her own.

Have these conversations now rather than leave it till she is 18 so she has time to think about it and learn some basic financial stuff.

Sea_Shell

Keep_pedalling wrote: »

If I was in your shoes I would simply deposit the money somewhere nice and safe which allows you to open a trust account, like NS&I. I would also explain to her that although she is entitled to her inheritance her GF wanted her to have the money when she reached 21. Encourage her to save for the future by doing things like open a LISA as a starting point to eventually buying a place of her own.

Have these conversations now rather than leave it till she is 18 so she has time to think about it and learn some basic financial stuff.

This...but you also have to accept that she might ignore your advice, withdraw the money at 18 and spend it "inappropriately". Hopefully they've got their head screwed on.

Are we talking a few £££ or many £££££? It would be very hard for any 18 yr old to "ignore" a large amount....for which they'll see many opportunities. A smaller amount is a bit easier to "save and forget" IMO.

Edit - Just read the word SUBSTANTIAL in the OP. Good luck!!

Fly_Guy

The law and society in general has decided that at 18 someone is mature enough to assume the full rights and responsibilities of adulthood. Warts and all !

As such, to deny someone who is otherwise mentally capable access to THEIR money until some arbitrary later age is just a nonsense. Would you take a request seriously if it insisted that money not be handed over until the age of 32 or 49 ?

If granddad didn't trust his adult granddaughter with the money then he shouldn't have given it to her. I think you just need to accept that it is not possible to legally abide by his request and maybe explain that it was the result of a well meaning, but ultimately old fashioned, attitude.

Lyndsey0506

Thank you.
As executors it has always been drummed into us that we must follow exactly what the will says. But if this is not possible then that’s absolutely fine as long as we aren’t doing anything wrong.
It’s not his granddaughter he didn’t trust, unfortunately it’s her mother!
Thanks again for your help.

Mojisola

Lyndsey0506 wrote: »

It’s not his granddaughter he didn’t trust, unfortunately it’s her mother.

The granddaughter can claim the money but doesn't have to.

If she wants to avoid pressure from her mother, she can work something out with you. Perhaps you could help her find an account at 18 that would lock her money away for several more years?

Sea_Shell

Mojisola wrote: »

The granddaughter can claim the money but doesn't have to.

If she wants to avoid pressure from her mother, she can work something out with you. Perhaps you could help her find an account at 18 that would lock her money away for several more years?

What a good idea. If GD is happy to do this, then you can help her to find/open a fixed term account, for whatever term she wants. Job Done! (maybe agree with her to have a little bit of "spends" first, without going silly, as a reward for "doing the right thing")

Keep_pedalling

Mojisola wrote: »

The granddaughter can claim the money but doesn't have to.

If she wants to avoid pressure from her mother, she can work something out with you. Perhaps you could help her find an account at 18 that would lock her money away for several more years?

First thing to encourage her to open would be a LISA. She can put up to £4000 pa annum into one of those and the government top it up with another £1000.

MovingForwards

How old is she and what is the exact wording of the clause?