Inheritance left to my (underage) son from my grandmother - To be held in Trust

xylophone

The OP mentioned 10 years on the basis of age 21 - if this is a bare trust, her son will have the right to access and control at age 18 - if he is rising 12, a cash JISA with an above inflation interest rate may be a good option.

wmb194

@Malthusian: Yes, I know, I was being hyperbolic. This thread is so funny. You're agonising over the risk of the OP being sued by a young son over the risk of not investing just £10k 'as a prudent businessman' would. It's exceptionally unlikely whatever the circumstances or outcome.

VikingVixer

Wow, this seems to have stirred some emotions in people ... doesn't really help me... but thanks to all the stuff so far..
here's some other facts to questions that have been asked...
a) He has £20,000 in PBs already, left from another late relative, but with no conditions so this would add to the pot 
b) He has just turned 11 (DoB June-2009)
c) He already has a CTF from the government's scheme back in 2009 but is effectively dormant as no additional payments hav even been made
d) We're not looking to make in a millionaire but 21 (or 18 as some people have indicated) but we don't want to end up giving him £50 because investments / inflation went the wrong way
e) At this time, the money is still tied up in the estate pending sale of property so I assume the is no actual "trust" yet (bare or other)

I get that the only "legal" risk is that he could argue that I did not take due care with the money ... so I don't think i need to worry about that for the time being.

Malthusian

wmb194 said:

@Malthusian: Yes, I know, I was being hyperbolic. This thread is so funny. You're agonising over the risk of the OP being sued by a young son over the risk of not investing just £10k 'as a prudent businessman' would.

Nobody's agonising. The law is what it is.

It's exceptionally unlikely whatever the circumstances or outcome.

People don't come to investment forums for the "you might get away with it" school of bad advice.

wmb194

Malthusian said:

wmb194 said:

@Malthusian: Yes, I know, I was being hyperbolic. This thread is so funny. You're agonising over the risk of the OP being sued by a young son over the risk of not investing just £10k 'as a prudent businessman' would.

Nobody's agonising. The law is what it is.

It's exceptionally unlikely whatever the circumstances or outcome.

People don't come to investment forums for the "you might get away with it" school of bad advice.

Hah hah! You worry much too much. The correct answer, therefore, is never, ever to be an unpaid trustee. There's no upside and only downsides. Particularly with small amounts of money like this where a paid trustee's fees would quickly swallow it, the problem is that if everyone took this approach society would have a great problem so there has to be some wiggle-room for the sub-optimal. It's fun to explore the worst case scenarios but, like I said before, short of stealing it* - which everyone knows is wrong - you don't need to worry about these hypotheticals too much.

*Edit: Or something insane like gambling all on the 2:30 at Newbury.

MovingForwards

VikingVixer said:

Wow, this seems to have stirred some emotions in people ... doesn't really help me... but thanks to all the stuff so far..
here's some other facts to questions that have been asked...
a) He has £20,000 in PBs already, left from another late relative, but with no conditions so this would add to the pot 
b) He has just turned 11 (DoB June-2009)
c) He already has a CTF from the government's scheme back in 2009 but is effectively dormant as no additional payments hav even been made
d) We're not looking to make in a millionaire but 21 (or 18 as some people have indicated) but we don't want to end up giving him £50 because investments / inflation went the wrong way
e) At this time, the money is still tied up in the estate pending sale of property so I assume the is no actual "trust" yet (bare or other)

I get that the only "legal" risk is that he could argue that I did not take due care with the money ... so I don't think i need to worry about that for the time being.

You will have a little time to work out what options are suitable, as until the cash is available you are not able to do anything with it. Solicitors do take a while to liquidate assets, wait for any debts to be put forward and distribute the estate as per the will.

a. Ok
b. Ok
c. Should be ok to drop money in up to the limits.
d. Which is why people are saying invest it.
e. See opening paragraph.

Try and Wade through the arguing to find the relevant information, as some will be of use to you.

xylophone

If the OP prefers to invest rather than simply save, this is perfectly possible within a JISA.
As I suggested, she could first open a bare trust account with a building society to hold the money initially.
She could then transfer £9000 to the old CTF within the CTF year.
She could then transfer the CTF to a stocks and shares JISA.
She could then add the remaining £1000 ( and indeed she might wish to consider taking £8000 from the PBs to make the full subscription for the current tax year).
https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

VikingVixer

xylophone said:

If the OP prefers to invest rather than simply save, this is perfectly possible within a JISA.
As I suggested, she could first open a bare trust account with a building society to hold the money initially.
She could then transfer £9000 to the old CTF within the CTF year.
She could then transfer the CTF to a stocks and shares JISA.
She could then add the remaining £1000 ( and indeed she might wish to consider taking £8000 from the PBs to make the full subscription for the current tax year).
https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

So you can break the £9,000 limit rule then? And simply open the Bare Trust account for the few weeks it is needed to just move the money arround ... Building society not gonna be happy with that, not that they can do anything about it

xylophone

So you can break the £9,000 limit rule then?

It is a quirk of the CTF to JISA transfer. See 

https://www.gov.uk/guidance/transfer-of-a-child-trust-fund-or-junior-isa-if-youre-an-isa-manager#:~:text=Where%20a%20CTF%20is%20transferred,the%20CTF%20in%20that%20year.

And simply open the Bare Trust account for the few weeks it is needed to just move the money arround ... Building society not gonna be happy with that, not that they can do anything about it

There would be no absolute need to close it - it is simply an account held on behalf of your child that belongs beneficially to your child - it could hold birthday money for example.

VikingVixer

xylophone said:

...lots of stuff...

Thanks for the help...