Beneficiary is under 18

Boleyn19

I hope someone can clarify. Our 15 year old son is going to inherit direct as as a beneficiary from his Aunt's estate and via a DoV from my mother's estate. We are told children cannot inherit until he is 18. We can pay money into his junior coop account as I am still on it as an adult signatory. However what happens if he/we decide he can take over this account before he is 18?

He can open various other accounts in his own name when he is 16 - can any money be paid into one of those if there is no adult signatory.

I hope you can clarify this for us.

Thanks in advance.

SeniorSam

The Trustees of the Will are legally responsible to hold the money in a Trustee account until he is 18, at which time he can do what he wishes. Some Wills create a Discretionary Trust and the Trustees can use their 'discretion' to gift at 18. The reason for his is if the Trustees feel that the beneficiary will just squander the gift, gamble it away or use it for bad purposes, they have a duty to make sure he can 'handle' the gift as many at 18 are not mature enough.

Keep_pedalling

How much are we talking about here? Smaller sums can be locked into a JISA for larger amounts it is a bit tricky.

TBagpuss

Also, the trustees may be able to pass the money to you to hold on his behalf

Yorkshireman99

A DOV cannot be done if the beneficiary is under 18. The minor cannot give a signature On the DOV. The executor can pay it into JISA.The recipient is not allowed access until 18.

Boleyn19

In answer to the above in one post.
1. My husband and a friend are the trustees of his sister's estate. Our 15 year old is one of the beneficiaries - no trust is mentioned.
My brother and I are joint executors and sole beneficiaries of our mother's will. We will divide the estate between us and then I am considering a DoV for our two sons (aged 15 and 18). As the estate will have been distributed the only impacted beneficiary is myself.

2. The amounts are well over the JISA maximum.

3. My understanding is that a DoV can benefit an 18 year old - a new beneficiary does not have to sign the DoV. If a minor is an existing beneficiary then they could not sign.

We have an existing Coop bank account where I am the adult signatory. This is the account we want to use. We can request him not to take control of it until he is 18, will that suffice?

AnotherJoe

Is a DOV necessary? You can just give them what will be your money. And you could give it to them at whatever age you want.

getmore4less

minor beneficiary in a will creates a trust.

Is the DOV necessary what tax benefits do you antisipate over you just gifting your share later?

Boleyn19

In answer to the above

* so as long as they don't access the money until 18 it will be okay in his account?
* a DoV with regards to my mother's will removes it from my estate. I can of course gift it and hope I don't pop pff before 7 years.

DigForVictory

Boleyn19 wrote: »

I can of course gift it and hope I don't pop pff before 7 years.

That's not recommended for Executors. if it has to go into Trust for safety, it has to.
Hoping to survive another 7 years is no way to settle an estate!

Boleyn19

DigforVictory - that is why I am proposing a DoV (as trustee and beneficiary).

I have just found a few fixed rate children's bonds, with no maximum amount, which are kept untouched until he would be 18.