Childrens Savings that Parents retain control when they turn 18?

Dox

A discretionary trust seems the obvious answer, with parents as trustees. How well you resist pester power as small offspring gets older is, of course, a question only you can answer....but the trust can have any minimum age provisions you like.

Useful article at https://www.thisismoney.co.uk/money/experts/article-4768524/What-happens-children-inherit-money-held-trust.html (although aimed at money inherited under a will, it gives a good explanation of trustee responsibilities etc).

xylophone

A discretionary trust seems the obvious answer, with parents as trustees.

With money provided by parents for unmarried minor children?

Caught by parental settlement rules.

https://www.professionaladviser.com/retirement-planner/feature/2300647/how-not-to-fall-foul-of-parental-settlement-rules

Malthusian

Dox wrote: »

A discretionary trust seems the obvious answer, with parents as trustees.

It is not at all obvious as the OP has said that they want their son to have the money, and has not mentioned any other beneficiaries they might want to benefit from it.

How well you resist pester power as small offspring gets older is, of course, a question only you can answer....but the trust can have any minimum age provisions you like.

If the son had an indefeasible interest in the discretionary trust (e.g. he is the only beneficiary) then it would be more accurate to say the trust can have any pointless and legally meaningless minimum age provisions you like.

If you put money into a discretionary trust with the son as the only beneficiary then he can access the money from age 18 regardless of what the trust deed says.

If there were other potential beneficiaries and the son had no automatic right to the money, that might be different (professional advice would be needed), but the OP has not mentioned anyone else they might want to potentially benefit from the money. They said they wanted their son to have it.

It is also likely to be tax-inefficient.

IanManc wrote: »

The Intestacy Rules apply, and the people who would inherit would firstly be the spouse, which the minor could have as one can marry at 16 in this country; or if no spouse then the issue, which the minor could have as the age of consent is 16.

If the minor had children arising from underage sex would they not inherit?

Assuming they would, we may as well also note that if a minor died with assets over £250,000, their children would get a share.

SouthLondonUser

Malthusian wrote: »

If the son had an indefeasible interest in the discretionary trust (e.g. he is the only beneficiary) then it would be more accurate to say the trust can have any pointless and legally meaningless minimum age provisions you like.

If you put money into a discretionary trust with the son as the only beneficiary then he can access the money from age 18 regardless of what the trust deed says.

Are you sure about this?

I thought the whole point of a discretionary trust is that trustees would have discretion; so, if the children turn out to be less than sensible, the trustee can decide to fund their education, but can decide not to fund a 12-month holiday around the world...

xylophone

https://en.wikipedia.org/wiki/Discretionary_trust may be of interest in respect of the rights of beneficiaries.


See also

http://trustsdiscussionforum.co.uk/t/discretionary-trust/4414

MaxiRobriguez

Alice_Holt wrote: »

One, very long term, option would be a Pension.

I think a pension is a great shout.

But it should be YOUR pension, not your child's.

Sacrificing more money into your pension gives you the tax boost that you might not otherwise get, plus a 6.25% boost on ISAs.

Downside is most parents are only going to be able to access that when the child is past university and first house buying age, so it depends what the money will be for.