Money to be held in trust

Esn1210

When my mum died she left a proportion of her house to my brothers children but they cannot have it until they reach 25 as stipulated in her will, the house has been sold and I need to place their money into accounts in their names. How can I do this when one is 16 and the other is 21? They aren’t children but at the same time, the eldest doesn’t work, and is reckless with money. Can I open Isa’s for them from my address or do they have to be opened from their home addresses? 

Keep_pedalling

What is the exact wording in the will? Many of these clauses are in effect just wishes and a beneficiary will actually be entitled to take their inheritance when they reach 18 (16 in Scotland).

If the 25 year clause is enforceable then ISAs are no use, you are going to need to set up a trust to hold the money which can be a real pain. How much are they each inheriting? 

xylophone

When my mum died she left a proportion of her house to my brothers children but they cannot have it until they reach 25 as stipulated in her will,

What exactly did the will say?

You need to establish whether or not the gifts "indefeasibly vested" in the grandchildren.

See https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem1563

If  they did "indefeasibly vest", then the trust is a bare trust.

The beneficiary of a bare trust has the right to call for access and control at the age of 18 (16 in Scotland).

https://www.gov.uk/trusts-taxes/types-of-trust

See the above concerning types of trust and taxation and refer to the solicitor who drafted the will if you are unsure.

Esn1210

50k each and mum stipulated the age when it can be given. They aren’t aware of this inheritance 

xylophone

50k each and mum stipulated the age when it can be given. They aren’t aware of this inheritance 

Did you read the links above?

Do you understand why it is important to establish whether or not the bequests have "indefeasibly vested" in the grandchildren and therefore whether you are dealing with a bare or discretionary trust?

Keep_pedalling

Ixylophone said:

50k each and mum stipulated the age when it can be given. They aren’t aware of this inheritance 

Did you read the links above?

Do you understand why it is important to establish whether or not the bequests have "indefeasibly vested" in the grandchildren and therefore whether you are dealing with a bare or discretionary trust?

If as I suspect this is going to be a bare trust, not only will the eldest GC be entitled to the money now, but they will be responsible for any taxes payable on the cash, and if they are on any means tested benefits the inheritance will almost cause those benefits to stop. 

If you attempt to keep this information from him, he could unwittingly commit benefit fraud.

TBagpuss

as others have said, you need to say exactly how the will is worded, as this makes a huge difference to what you can (or MUST) do.

You may not have the power to withhold the money until they are each 25, even if that was what your mum wanted. Was the will drawn up by a solicitor? Have you taken any proper legal advice about it?

As Keep Peddling says, it's possible that the elder grandchild may owe tax on their inheritance, and have to repay any benefits, so you need to work out the legal position as a matter of urgency.