wording of will

nom_de_plume

adviceforeveryone said:

Thank you everyone .
Grand children are all over 18 years (3) , great grand children ( 4)  are all under 18..
3: should the great grand children money be kept until they are 18?

  3 is your answer.

adviceforeveryone

Thank you again or explaining things more clearly..
The amount is £1000

xylophone

In what relation do the four greats stand to the three grandchildren?
How old are the greats?
Does each great have a JISA?
Is the money currently in the executor's account?
You might  open a non interest bearing account in your name and designate it,  GPAWILL for example. You then transfer £4000 to this account.
Let's suppose each grandchild is the parent of one or more of the children.
You draw up an agreement under which you lend the correct proportion of the £4000 to the parent of the greats.
I, John Smith, acknowledge a loan of £......from AFE as Trustee of .......Will trust and confirm as follows
(1)The monies shall be applied as to a gift of £.... to my child ..... and held in his/her JISA account .
(2) In the event that my child........ should die before attaining the age of 18 years, I undertake to repay the loan to AFE as Trustee of the.....Will Trust within......months of that event.
(3) Should my child reach the age of 18 years, the loan becomes an absolute gift to my child and is non repayable.

I wonder if that could be a solution to the problem?

adviceforeveryone

1st and 2nd grand children each have 2 great grandchildren, 1 grand child has no children. ( all under 15yrs) 
I will ask about the JISA. 
I did think if they had such account it may be simpler to do that. 

xylophone

1st and 2nd grand children each have 2 great grandchildren, 1 grand child has no children. ( all under 15yrs) 

Worth considering the above solution?

adviceforeveryone

seems the easiest way if ok to do

xylophone

It occurs to me that you would need £4001 in the account so as to keep it open once having made the loans.
I only offer it as a possibility because if the money stayed in a non interest bearing account,  there would be no  income/inflation protection at all for any potential beneficiary.
This would not be fulfilling your duty of care.
At the least you would need to decide to earn some income on the cash but this would be subject to tax.
It is a  very modest amount so that interest earned would certainly not be greater  than £1000 per annum so the Trust rate would be only 20% - nevertheless, it is a loss to the Trust and a faff to have to report it to HMRC.
It seems to me  that as  Trustee you could defend the above arrangement as the most tax efficient for the potential beneficiaries and as offering protection (through the signed and dated binding agreements) for the other potential beneficiaries in the tragic event that one of them should die.
You could check with the solicitor?

badmemory

Why not just get it over with & gift the "greats" with the £1k, with a note in your POA that any future greats whilst you are alive should also get that £1k.