Acting as a trustee for a child

simon_blay

Hi - my daughter has been left some money by a grandparent that passed away. Recently we received a cheque in the name of myself and the executor (another family member) on my daughter's behalf.

How do I go about saving this? Initial impressions are that I should be speaking to a solicitor and taking advice. However the couple I have spoken to don't seem particularly interested

Thanks

xylophone

Recently we received a cheque in the name of myself and the executor (another family member) on my daughter's behalf.

I am a little puzzled by this - was the money not originally in the executor account?

Who drew the cheque?

How much is involved?

How old is your daughter?

simon_blay

Estate was settled by the solicitor who subsequently raised the cheque to myself and the executor on behalf of my daughter who is 3

xylophone

This money is an absolute gift without contingency and you and the Executor are to be bare Trustees for your daughter? 

If this is a bare trust then you need to be aware that your child has the absolute right of access to and control of the assets at the age of 18.

This cheque has been drawn in favour of you both  and you will need a Trustee account in both names into which to pay it.

Natwest and Metro Bank have been mentioned on the forum in this connection.

It would appear that this is a substantial sum of money and you will need to decide on a savings/investment policy.

It seems to me that it would be quite legitimate to use a JISA each year to save/invest part of the legacy.

https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

Other than that you will need to open savings accounts/ an investment account for the child as her Trustees.
 Examples
https://www.bathbuildingsociety.co.uk/personal-savings/accounts/childrens-accounts/junior-saver/

https://www.skipton.co.uk/savings/childrens/childrens-saver

https://www.youinvest.co.uk/investing-for-children/dealing-accounts-for-children

The income received in the JISA will be free from income tax and liability to CGT.

With regard to other income received on bare trust assets, the child beneficiary has her own tax allowances which may be used.

https://www.theprivateoffice.com/specialist-services/bare-trusts
https://www.gov.uk/trusts-taxes

simon_blay

Thank you, really helpful