Mother of child died intestate

NannaH

My Sister’s friend has just died, no will according to her parents -  she was divorced and has an 8 year old.
She was a teacher so presumably her child will inherit her pension/death in service payout.  She also owned a house with decent equity.  Her parents will apply for Grant of representation. 
My query is : can the child’s Grandparents access any of the estate in order to care for her?  

They aren’t well off and are both retired,   I’ve read  that a trust for a minor needs to be created but by Whom?   

Flugelhorn

There are ways for them to access money (which would be held in trust)  - have found this online "The Trustee Act 1925 provides that in certain circumstances, capital from a Trust Fund may be advanced for the benefit, maintenance and education of a minor beneficiary before they reach the age of entitlement" 

doodling

Hi,

Comments / questions:
1. Where in the UK was she living, the rules of intestacy vary according to country?
2. Did she nominate someone for the death in service payout? This is very likely to be outside her estate and therefore who it goes to is not covered by the rules of intestacy. The pension people will generally pay to dependants if there is no nomination otherwise.
3. Once you know who should be receiving the estate then you can work out whether it all goes to the daughter or whether others will benefit.
4. The person who applies for Letters of Administration is responsible for ensuring that the money reaches those entitled to it. This is almost certain to require setting up a trust in the event that one of them is a minor.
5. I can't definitively answer your specific question but it is likely that the daughter's money could be used to help support her as she is growing up.  I would recommend that some money is spent on legal advice. If it all goes to the daughter then those administering the trust need to ensure that they act in her best interests at all times and it is often helpful for an expert to explain exactly what the means.

getmore4less

It can get more complicated

As said country is important as the trusts are different.

The father may be first in line to administer the estate if he still had parental responsibility for the child.

The grandparents should not assume it is their job.

For England and Wales

The  trust is  often referred to as 

Bereaved Minor’s Trust
or;
Trust for bereaved minors

they get different tax treatment to other types of trust.

Loads of articles on the basics of how these work and the tax treatment

The trust terms are the statutory one, automatically comes into existence  like will trusts do.

The trustees (typically the ones with parental responsibility) manage the trust assets

One issue is often how to invest the money. 

NannaH

England.
Father not involved for the last 6 years although he is apparently the type to try and muscle in if money is involved. 

I’ve explained about the TPS pension to my Sister who will pass it on.  

getmore4less

NannaH said:

England.
Father not involved for the last 6 years although he is apparently the type to try and muscle in if money is involved. 

I’ve explained about the TPS pension to my Sister who will pass it on.  

Have his parentally responsibilities been removed by the courts?

NannaH

I don’t know,  if not then it could get very nasty,  the girl doesn’t even know him,  he simply walked away. 

getmore4less

Will he find out?

TBagpuss

Grandparents may be able to apply for a residence order so the child can live with them, however Father of the child will have PR if he was married to the mother (I am assuming that she was divorced from him, not married and divorced from a different individual, and he would, as the surviving parent, be entitled to apply for letters of administration on behalf of the child. 

It is likely to make sense for your friends to get some proper advice as soon as possible - even if they don't get letters of administration, they can still apply for an order for the child to live with them - that application would be decided on the basis of what was in the child's best interests - I am not sure if they could then seek maintenance from the father via the CMA or if it would have to be a separate application under the Children Act.