How do I set up trust fund/account for under 18’s

Good evening. 
I’m executor of my mums will. Mum wanted her estate to be shared equally amongst her 8 grandchildren but they can’t have access to it, until their 18. 
The eldest is 22 and the youngest 13.
Which account or fund would be the best option?
thanks
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Replies

  • EssexHebrideanEssexHebridean Forumite
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    This is a question for a solicitor specialising In trusts IMO. it’s a complex area and one where it’s vital the setting up is done correctly. 
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  • wmb194wmb194 Forumite
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    Good evening. 
    I’m executor of my mums will. Mum wanted her estate to be shared equally amongst her 8 grandchildren but they can’t have access to it, until their 18. 
    The eldest is 22 and the youngest 13.
    Which account or fund would be the best option?
    thanks
    What kind of trust do they need? If it's just a bare trust that would be relatively easy e.g., any children's account. If the term will be less than five years then cash is often recommended.

    Another option for no access until 18 would be a JISA, but you'll be affected by the amounts involved vs. the annual contribution limit and a parent or guardian needs to open it.
  • MX5huggyMX5huggy Forumite
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    Presuming they are UK born those under 18 all have Child Trust Funds or Junior ISA if the CTF’s have been transferred. If £9000 (the CTF/JISA annual limit) this tax year and £9000 after April if that uses up the amount or the vast majority I would just use them, cheap no solicitors involved. 
  • mh93mh93 Forumite
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    Apologies, I should’ve added that the amount could be between £30-33k each, 
  • xylophonexylophone Forumite
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    I’m executor of my mums will. Mum wanted her estate to be shared equally amongst her 8 grandchildren but they can’t have access to it, until their 18. 
    The eldest is 22 and the youngest 13.

    What exactly does the will say?





  • mh93mh93 Forumite
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    I don’t have the will in front of me but basically the estate to be shared amongst the grandchildren and held in a trust until they reach 18
  • dunstonhdunstonh Forumite
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    I’m executor of my mums will. Mum wanted her estate to be shared equally amongst her 8 grandchildren but they can’t have access to it, until their 18. 
    That is going to be fun job registering all 8 of those trusts with HMRC.   However, it will largely be a copy and paste exercise.   You will also need to make sure the trustees carry out their duties in the future.

    Alternatively, if all the beneficiaries agree, the money could be put into Junior ISAs which prevent access until 18 and require none of the issues with trusts.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • mh93mh93 Forumite
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    Can I put a lump sum of £30k into a Junior ISA? I’m sure all parties will agree on the idea, less hassle.

  • mh93mh93 Forumite
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    I’m guessing my brothers would have to set up the isa’s in their children’s names 
  • MX5huggyMX5huggy Forumite
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    How many are under 18? Any that are 17 I would not really really concern myself about, they can just wait the few months. 

    The JISA limit is is £9000 per tax year so you’re not going to be able to get this sorted that easily. 

    As I said before they all have Child Trust Funds even if the parents did nothing at all the Government opened CTF’s with £250 when they were born. The Parents could have transferred to JISA’s or not but they can’t have CTF’s and JISA’s. 

    A 16 year old can have an ordinary ISA but there is no trust element to these they would have control. 
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