Investment for will beneficiaries who are minors

squishy2019

Hi All thanks for the useful info, I should have added that the rest of clause 6 is 3 sub clauses each of which leave 25% to each of the 3 surviving children.

Wording is similar to "Twenty five percent to my son/daughter xxxx but if he/she dies before me this gift shall fail and be divided amongst the remaining sub clauses of clause 6 that do not fail accourding to their weighting"

xylophone

"Twenty five percent to the children of my deceased daughter in equal shares on attaining the age of 25 years

As I see it, the trouble with this wording is that it is not clear whether "on attaining" means if the grandchild attains or "when" the grandchild attains.

If it is "when", then there seems to be some ambiguity about the nature of the Trust.

This may be of interest

https://www.rhw.co.uk/legal-guides/trusts-for-children-some-options/

Regarding post 5 above, see Successive contingencies affecting the property in

https://www.gov.uk/government/publications/trusts-and-capital-gains-tax-hs294-self-assessment-helpsheet/vdsv

Is there a substantial sum involved?

It still seems to me that it will be worth getting a solicitor's opinion.

And if it is decided that no disbursements can be made for around ten years at least, and it is intended to invest the capital, it may well be advisable to take the advice of an IFA.

https://adviserbook.co.uk/ You would tick "confirmed independent", "investments" and "trust and tax planning".

squishy2019

xylophone wrote: »

Is there a substantial sum involved?

I estimate it will be between 10 and 15,000 for each of the 3 grandchildren.

xylophone wrote: »

It still seems to me that it will be worth getting a solicitor's opinion.

Yes it seems to make sense I have already approached a local solicitor who is experienced in trusts.

Many thanks for the additional info and links, they are useful.

xylophone

Let us know how you get on.

xylophone

Giving this some thought, on this modest (£30,000 - £45,000) sum, and if this falls to be taxed on a Trust with contingency basis, might it be an idea to choose an investment which aims at growth rather than income( to take advantage of the £1000 Trust dividend income rule and to use the Trust CGT allowance)?