Trust for a minor?

Tenrab

Hi All,


We need some good advice. Our 40 year old daughter died unexpectedly recently without a will. Apart from a small bank balance, she leaves a house. Being a single mother, her sole beneficiary is our 5 year old grandson. We wish to use the safety of a Trust to hold the property (which we intend to rent out and the income to be reinvested). We would like to release funds through our grandsons life, some at 18 and some at 21, to ensure he is provided carfully for. We don't have much cash available to set this up and wondered if there is an inexpesive way to do so?


Any help or advice most welcome.

xylophone

See https://www.gov.uk/trusts-taxes/types-of-trust

https://www.gov.uk/trusts-taxes/trusts-and-inheritance-tax


You should take advice from a solicitor who is a member of STEP.


See https://www.step.org/step-directory

He may well recommend that you take advice concerning taxation of income produced from letting out the house.

He could suggest a suitable professional or you might try

https://adviserbook.co.uk/

You would tick "confirmed independent" and "trust and tax planning"

when the menu comes up.

Be aware that by letting out the house, you as Trustees would become landlords on behalf of the minor child.


https://www.gov.uk/renting-out-a-property

It might be easier to sell the property and take advice on investing the money within a trust for the child.

Linton

How much is you daughters estate worth? If it is significant, say more than £100K, I think you would be foolish not to take professional advice. It could well be sensible to take professional advice anyway.



Are you sure that keeping the house and renting out is the best use of the money? Look at it this way.... If your daughter had left the equivalent value in cash rather than the house would you immediately have decided to use the money to buy a house, and in particular that house, to rent out?

Keep_pedalling

Your grandson will be entitled to his full inheritance once he reaches 18 you don’t have the right to hold any back a portion of it to a later age.