Account to hold funds in trust

-scrumpy-

Hi everyone,

My brother and I are the exectuors for my Dad's estate. My father passed away in March this year. In his will, my dad left some money to my son. My son can only access the money when he is 21 (he is currently 15, nearly 16).

So I'm trying to work out how I hold this money in trust until he is 21. My brother and I would be trustees, as that is what's specified by the will. But how do I actually go about creating an account to hold this money in? How would I specify that I (and my brother) are merely a guardian of this money and so that it is not ours (i.e. I wouldn't want it to form part of my estate if I die before my son reaches 21).

I've tried searching online but can't really find an answer. I'm hoping the good people on here may come up with the goods!

Thanks in advance for any help.

Nick

Savvy_Sue

Whatever your father's wishes, it's quite likely that your son could just break the trust by asking for the money at age 18. 

There are exceptions but you'd need legal advice to confirm what sort of trust it is, or post redacted clause and someone here will tell you if it's the complicated sort.

However if it's the straightforward kind, I think there are easy options, eg any account your son can't access before his 18th.

jimbo6977

NS&I offer trustee accounts. This is not a recommendation of course, and there may well be other options available. 

Keep_pedalling

What is the exact wording with regards to him not getting his inheritance until he is 21. Unless we are talking a very large amount it is unlikely that this is enforceable as few wills go to that length. 

Unpensioned56

Trustee bank accounts are rare anyway - Leeds Building Society do a child account (with a good interest rate too) with parent as trustee until 18, as does Skipton. But I think you need legal advice on the precise trust that's been created.

Savvy_Sue

You might find this thread useful too: https://forums.moneysavingexpert.com/discussion/6467087/registering-trusts-created-by-inheritance

-scrumpy-

thanks for the advice thus far.

So the will states:

"I GIVE all my real and personal estate whatsoever and wheresoever situate after payment thereout of my just debts and funeral and testamentary expenses and any legacies hereinbefore bequeathed and the tax if any thereon to my trustees upon trust to sell call in and convert the same into money with power to postpone the sale calling in and conversion thereof so long as they in their absolute discretion think fit without being liable for lass as to

i) 10% to my grandson <name> of <address> to be held in trust until he attains the age of 21 years"

This may be relevant, further on in the will it states:

"The Standard Provisions of the Society of Trust and Estate Practitioners (2nd Edition) shall apply to my Will with the deletion of paragraph 5 of these Provisions."

as to the amount, we are looking at about £95K

Keep_pedalling

How old is the grandson? Based on the wording this looks like an absolute bequest and the 21 year clause is nothing more than a wish, so he can claim his inheritance once he reaches 18 (16 in Scotland).

handful

We are in a similar position as executors for my cousins estate. One of the beneficiaries is currently 18 but the will states his legacy should be paid to him once he reaches 21. We have been advised that the will is effectively a trust without it being a formal trust and myself and my sister have opened a joint online easy access account with the Coventry BS. They will not accept accounts being opened for the purpose of a "bare trust" but I explained our position and they were fine with it. The account will be registered with HMRC so that interest won't count against our savings allowance. I don't know what will happen if he starts demanding money because he is 18 but if that does happen, any legal costs will come out of his legacy!

It was quite tricky finding a suitable account though and I agree it seems to be poorly provided for considering how common this must be.

Keep_pedalling

handful said:

We are in a similar position as executors for my cousins estate. One of the beneficiaries is currently 18 but the will states his legacy should be paid to him once he reaches 21. We have been advised that the will is effectively a trust without it being a formal trust and myself and my sister have opened a joint online easy access account with the Coventry BS. They will not accept accounts being opened for the purpose of a "bare trust" but I explained our position and they were fine with it. The account will be registered with HMRC so that interest won't count against our savings allowance. I don't know what will happen if he starts demanding money because he is 18 but if that does happen, any legal costs will come out of his legacy!

It was quite tricky finding a suitable account though and I agree it seems to be poorly provided for considering how common this must be.

I think you have been poorly advised, the beneficiary of a bare trust has the right to take absolute control over the assets once they become an adult they are also responsible for any tax due on the trust.