Trust options for minors

ChilliBob

Hello everyone, 
My Mum is a having a deed of variation drawn up to divert funds she has received to those of an unsigned will of somebody, part of this is giving money to grandchildren, some of whom are under 18.

So, thus involves the solicitor setting up three trusts, however, I want go know the options we have in setting these trusts up before we tell her to do it. (she's very slow unfortunately, and it's too far on for us to swap solicitors!) 

Essentially I think my mum wants the minors unable to access the funds until they are 18, but doesn't want it just as frozen cash which inflation will erode, especially as one minor is 3!

Any advice or linkage or suggestions most welcome cheers! 

xylophone

to divert funds she has received to those of an unsigned will of somebody, 

Do you mean that your mother is to benefit under a quasi intestacy and wishes to divert the inheritance from herself to her grandchildren?

The money may be diverted to the children - as they are under 18, they cannot give good receipt for the funds but their parents may give receipt for them and hold the funds in bare trust for their children.

How much is involved?

ChilliBob

Thanks for the reply. I don't fully understand so I'll give more info!

Basically my aunt and uncle passed away in 2019, both without a will. We do know both were very fond of their family, and indeed we did find an unsigned will stating what were basically doing. Also, a bit deep but final hospital wishes echoed this without getting too emotionall, so there's no issue there.

My Mum doesn't want to gift this incase she passes away within a few years (7 or less) so is using the deed. It's 10k for 5x great neices or nephews, 3 of which are under 18.

The rest, quite a bit more, goes to neices and nephews (not great).

What we do want is to avoid the money being classed as their parents. Can it be as if my Mum has setup the trust and just puts the cash in there? 

Thanks. 

ChilliBob

In the form of an update, it turns out two of the three grandchildren have one of those chid trust funds from Gordon Brown with (originally) £250 in it. My mum is thinking she can just get the deed to pay into those two accounts?

If so, it might not be worth further hassle, since the other child is my son, and I can just put 10k in his JISA (over different tax years). 

Do you reckon this Gordon brown thing will work?! (First I had heard of it) 

xylophone

Your mother can have the will varied to pass the gift to the children.

The maximum that may be paid into the CTF in the CTF year is £9000 - the same is true for the JISA.

There is a little work around.

£1000 can be paid into each CTF and then the CTF can be transferred to a JISA (which closes the CTF) and £9000 paid into the new JISA.

Coventry BS will accept a CTF transfer. See  https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

With regard to your son's JISA,  as you say you can spread the legacy over the current tax year and following.

The Coventry JISA is a cash JISA - the parent may wish to consider a subsequent transfer to a stocks and shares JISA  for those with more than ten years (say) before reaching age 18.

ChilliBob

That's, brilliant, many thanks. One less thing to worry about for my Mum. Solicitor says we still have about 18-24 months left before it's all settled, I had no idea it'd take this long or be so strrssful for my Mum. 
Thanks again.