executors children savings

dave_qsw

I am an executor of an estate which requires me to put the money into an account that the children or their parents cant access until they are 18 years old. Has anyone got any experience or help to give on this subject.

dzug

In a similar situation I put the cash in National Savings Certificates and kept hold of them until they were 18.

But any account where you, the executor, are the account holder, will do. Make sure it recognises you as executor, and don't be fobbed off with a personal account.

dunstonh

The investment decision is one that belongs to the trustees of the money. Not the executor of the estate (unless they are one the same). The executor has to ensure wishes have been fulfilled but the investment decision is not the executors remit.

Has anyone got any experience or help to give on this subject.

The trustees of the childrens money have a legal liability to ensure they act in the best interests of the child. This means they don't stick their own investment opinions onto that of a child but invest it appropriately. i.e. a high risk investor with their own money shouldn't follow that strategy for the childs money and a low risk investor shouldn't do the same. The strategy should be realistic and appropriate. Inexperienced investors should seek advice from an IFA and keep the suitability report as a record as this can be used as evidence that the trustees have done the right thing (so if they are taken to court later for mismanagement, they can blame a professional who in turn has potential liability).

It may be that certain types of investment that can be held in trust should be used. Not all investments can.