Inheritance for Minors to be Invested until 18

Albermarle

 Let’s just hope they don’t want to go to Uni!! 

Most Uni costs are covered by the Student Loan system .

nmappley

Skipton was accessible to the trustee and the link to BathBS is instant access too. The only thing I can think of is to do as you suggest and move the annual amount into JISAs but that would mean the solicitor becoming a trustee which is extra cost. Why is this so difficult?!!  I thought banks would be gagging for an investment/savings of £90k. But it appears not. I even contacted my own bank who I’ve been with for 32 years and own shares with and they couldn’t suggest anything. I’ll let you know if I find somewhere!! 

nmappley

There is something called a Bereavement Minors Trust that the gov brought in for this very situation but all I can find are links to lawyers/solicitors and no actual link to setting one up. Obviously too specialised. 

xylophone

You said

My solicitor is quite flexible and said as long as me or his brother (the children’s trustees) or anyone else can access the money then they’re happy to transfer it.

Did you mean "cannot"?

It does seem to me that  a workable solution might be for you to ask the solicitor to join with you as Trustee of a Bare Trust account for each child.

A Bare Trust account might then be opened for each child with the Skipton BS and this would give the flexibility of permitting subscriptions to the JISAs as previously discussed.

A reasonable rate of interest would be paid to each child's account.

It may be that the solicitor would accept a nominal fee - after all, the work would be minimal - he would simply have to join with you in authorising a transfer of money from the Skipton accounts to the JISAs once a year for each child.

Is it worth discussing this with him?

nmappley

Haha! Yes I did mean can not - the complete opposite of what I wrote. So glad you’re on my wavelength! Yeah I think that’s gonna be a good solution. They then have a say to any movement of money and can keep to what they have agreed with the charity. Damn having to pay for it though 😡. 

Everyone’s just out to make money. I might ask them if they’ll do it for free - it’s only 5 transactions after all. If you don’t ask you don’t get 😊. Thanks ever so much for your help. Been right back to January on this forum looking for similar threads and your name popped up a bit. You’re very kind. Thanks again. 

Malthusian

nmappley said:

There is something called a Bereavement Minors Trust that the gov brought in for this very situation but all I can find are links to lawyers/solicitors and no actual link to setting one up. Obviously too specialised. 

Bereaved Minor's Trusts are created when a minor child inherits funds from their parent's estate providing that they attain the age of 18. (This is different to bare trust in that if the child dies before 18, the funds revert to the estate; if a child dies before 18 with funds in bare trust, they are treated as their own and, as minors can't make Wills, they follow intestacy laws.)

They have nothing to do with this situation as Bereaved Minor's Trusts can only be set up using funds inherited from a parent (in this case the money is coming from an employer's death in service payment). The taxation and reporting of Bereaved Minors Trusts is more onerous than bare trusts so they are not desirable.

nmappley

Ahh ok. Thank you so much for clarifying that. So it is for the estate inheritance only. I have yet to deal with that as we are hoping to complete on the sale of his house within 2 weeks but after fees and deductions, I think they’ll probably get about £15k each from his estate. Thanks again.