Setting up child trust fund 24 August 2022 at 4:27PM in Deaths, funerals & probate 2 replies 92 views

S_D1

Hi, my sister and I are executors of my late mum's will. She specified that all her grandchildren were to inherit £10,000 each and it was to be held in trust until they turned 25. There are 5 grandchildren; 25,  2x 23, 15 and 12 years old. Is it necessary for us to set up individual trusts for each child and if so how much does this generally cost? Any advice would be appreciated. Thanks

Keep_pedalling

If as likely each of them has been left £10,000 absolutely then yes you will need the money in separate trusts, at least for the youngest 2. Will often contain clauses about beneficiaries not receiving their inheritance until they reach a certain age, but if the money has been been left absolutely then all the older GC will be entitled to take their inheritance now as they are all over 18. 

Unless the will has clauses that changes the beneficiary should one of the GC not reach 25 or instructs the trustees to set up a discretionary trust then the bequests are going to be absolute ones.

Keep_pedalling

For small sums like this (again assuming absolute gifts) the simplest and most cost effective solution for the two minors would be to put £9000 into a JISA for each of them and put the remainder in the same JISA in April next year.

A discretionary trust is more complicated.