Bank account- inheritance money

Shezz

Just a bit of background. We are going through probate, in the next couple of days the house will sell, once sold we will complete probate and close the administrators bank account, we (my sisters and I as executors) have each done a variation to the will so some of our inheritance will go to our children, only out of our share of the inheritance.

For a couple of our children  (although really adults now, but will always be our children) we really do not want to hand all the money over to their banks accounts where they will have access to it, (We will let them know of the inheritance, and we have genuine reasons as to why we do not wish them to have absolute control over it.), however we do not want the money to go into our personal account, as when we do hand it over to them it will look like we have gifted the money to them from us rather than this being inheritance money.

Can anyone advise how best way to go around this.

Alter_ego

if you've done a variation of the will, it's difficult to see how you can avoid carrying it out and handing the money over. Executors don't have a choice about how they administer the will

Shezz

We want them to have the money, hence why we did a variation, we just  want to really hold onto it for them once the account is closed, for reason I do not want to say on here,  but we do not wish for it to go in our bank accounts and pass it over at a later date.

Alter_ego

I suggest you read up on the duties of an executor. Your private reasons are not a good enough excuse to fail to carry out the provisions of the will.

tacpot12

You may be able to use a trust or a trust account for this. It is more of a problem if they are adults. You need to speak to a someone who is a STEP (a Society of Trust and Estate Practitioners), They will advise you of what you can do, but if the Deed of Variation has already been signed, it may be too late to do anything. I would have thought that the Deed of Variation would have to create any trusts that we needed. 

Shezz

We are carrying out what it states on the will and are not failing on these duties, as well as being executives we are also the beneficiary's of the will, it was our choice to do a variation.

We decided to give the children some of our inheritance, and it is us that have written the letter for the variation, the variation has no affect on the IHT and CGT, hence we do not have to send it to HMRC at the moment we can rip up the variation as we have not all signed it yet.

I was asking the question to see if anyone could suggest a way around out problem, 

Shezz

tacpot12 said:

You may be able to use a trust or a trust account for this. It is more of a problem if they are adults. You need to speak to a someone who is a STEP (a Society of Trust and Estate Practitioners), They will advise you of what you can do, but if the Deed of Variation has already been signed, it may be too late to do anything. I would have thought that the Deed of Variation would have to create any trusts that we needed. 

Thank you, I have created the deed of variation letter for each of us I checked the HMRC variation checklist  I have given them to my sisters,  we all agreed verbally at the beginning we wished to pass some inheritance across,  we have not signed the variation yet although we definitely will be doing so. once we had the answer to my question then would sign in the next couple of days to make it official

Daliah

In a nutshell, you have conflicting wishes - you want to give money to your children but you don't want to give money to your children.

It's not entirely clear whether you have already signed the variation to the will - if you haven't, you can still resolve the conflicting wishes (e.g. by passing less to the children). If you have signed, you are committed.

In any case, I would recommend you consult/pay a professional on the matter, not a bunch of strangers on the internet.

Mojisola

Shezz said:

Just a bit of background. We are going through probate, in the next couple of days the house will sell, once sold we will complete probate and close the administrators bank account, we (my sisters and I as executors) have each done a variation to the will so some of our inheritance will go to our children, only out of our share of the inheritance.

For a couple of our children  (although really adults now, but will always be our children) we really do not want to hand all the money over to their banks accounts where they will have access to it, (We will let them know of the inheritance, and we have genuine reasons as to why we do not wish them to have absolute control over it.), however we do not want the money to go into our personal account, as when we do hand it over to them it will look like we have gifted the money to them from us rather than this being inheritance money.

If you have done the deed of variation and made your adult children beneficiaries then you, as executors, have to give them the money.

If you wanted to keep control of the money, you should have taken the inheritance in your name and then given them money when you felt they were capable of managing it.

Alter_ego

In post one you have done a variation. In post 7 you have not signed a variation.  I'm out!

born_again

How old are the dhildren?