How to look after inheritance for children

xylophone

the will was professionally drawn up with a solicitor

Then ask his opinion as to whether the legacies have "indefeasibly vested"?

https://www.lawskills.co.uk/articles/2010/01/the-nutty-problem-of-contingent-pecuniary-legacies/

If not, there is not a bare trust.

You will need a decision so as to sort out the tax treatment/whether a return is required.

xylophone

Re tax - see https://www.accountingweb.co.uk/any-answers/will-trust-for-minor-with-contingency

if the solicitor advises the Trustees/Executors that the trust is not bare.

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

xylophone

In the absence of evidence that the legacies are vested I certainly wouldn't pay out before 25 as the residuary legatee would have a potential claim against the executors if one of the beneficiaries died before that age, unless there was a court approved Deed of Variation.

I can only repeat that I think that the executor /trustee should seek the opinion of the solicitor who drafted the will.

18cc

You don't have to worry about investing it for them all you have to do is to make sure there is £25,000 to give each of them when they reach the age of 25

if you put i£50k now in a non-interest-bearing account and give them each exactly £25,000 then you will be meeting the terms of the will

if you invest it and the money increases in value you still only have to give them £25,000 the rest belongs to the estate

dales1

We are not talking vast amounts here, and legal fees can easily be a drain of large diameter.
Surely the executor simply wants to reliably and economically confirm the intention of the original will (from the drafting solicitor, who already knows the case).
To procure the views of another different solicitor is likely to be more expensive in terms of researching the topic, and also unreliable / unhelpful because of of lack of background knowledge and notes. (He may even be liable to advise that further legal expense is desirable / necessary !!)
If the drafting solicitor cannot assert to be certain on one of the two interpretations, then yes, other assistance may be necessary.

xylophone

From https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem1563

It is up to the trustees to establish whether a trust is bare. If the trustees have access to legal advice they should ask their legal adviser whether the trust funds have ‘indefeasibly vested’ in the beneficiaries. If they have then the trust will be a ‘bare trust’.

In other circumstances the trustees will need to consider carefully the terms of the trust that they are administering. Does the trust

impose conditions that must be fulfilled before the beneficiaries become entitled to the trust funds, or
does it merely defer payment until the beneficiary reaches a particular age?

The opinion of the one who wrote it will be that they did a fantastic job when they drafted the Will.

His opinion of the job he did is immaterial to the question.

The testator was his client - he should have notes on what was said - he should be in a position to answer the question as to whether the funds have "indefeasibly vested".

There really is no more to say - it is up to the executor /Trustee to take such action as he thinks fit given the guidance from HMRC above.

xylophone

The issue isn't whether the trust is bare - it is whether the legacy is contingent or vested!

Read my first post and if you are going to quote then cite the full text and guidance.

If the legacy has indefeasibly vested, then a bare trust has been created - the type of trust has a bearing on tax treatment and administration.

But in the end your opinion or mine is just that - it is up to the executor /trustee to take the legal advice he deems appropriate to his responsibilities.

There is simply no point in continuing the discussion because there is no more to say.

AnotherJoe

IanManc wrote: »

"The solicitor" won't be able to get any further than I have, due to the wording of the Will.

The wording is far from ideal, but there is no evidence that these are vested legacies.

Where there is any doubt about whether a gift is vested or contingent, the safe/cautious approach is to treat it as contingent in case the legatee fails to reach the stipulated age.

If I was landed with a Will like this then I would think that the best practical course of action is for all of the beneficiaries to agree to a Deed of Variation.

Children cannot agree to a DoV.

xylophone

Yet you continue to repeat your attempts to provide legal advice on trust law.

NO, I do not. Have you actually read my posts and in particular the first one?

I would not dream of providing advice on this or any other forum.
I have repeatedly said that the OP should take qualified legal advice!

I pointed out the guidance given by HMRC, pointed to some discussion of the topic, and pointed to the fact that your glib suggestion of a DOV on the first occasion that you mentioned it did not indicate the caveat concerning the interests of minors.

If anybody has attempted to provide advice I would suggest that it is you?

Read your own posts!

And this is absolutely my last word on the subject - solemn promise!