registering trusts created by inheritance

Unpensioned56

My son  has inherited money from my deceased parent, which since he's under 18 I'm holding as a trustee (it's an implied trust as the will made no mention of age). When I invest it, do I need to register the dealing account with HMRC as a trust? I can't work out if it falls under the exemptions. FInding it hard to find advice. It's not going to be an ISA.

HobgoblinBT

As I understand it all U.K. trusts need to be registered through the U.K. gov website.  The website lists those that are exempt from annual returns.  Hope that helps.

Keep_pedalling

This will be a bare trust and will require registering. If we are talking about a relatively small amount you could place the lot in a Junior ISA which avoids the need to set up a trust but prevents him accessing the money until he is 18

How old is your son?

If he is within a few years of 18 investing his money is high risk so you should stick to cash. Even if we are talking about a baby I would be looking at multi-asset funds rather than individual shares through dealing account which is very high risk.

Malthusian

As per Keep pedalling - the trust needs to register, and immediately. It's the trust that needs to register, not its accounts.

It might have been exempt if you were the one who died, but as it was a grandparent, it's not a "bereaved minor" or "18-25" trust.

Unpensioned56

Thanks - much appreciate this! It's something that none of the several solicitors and IFAs I've dealt with has mentioned. Absolutely going with multi asset funds not shares. I wouldn't say keeping money in cash is a great plan for long term horizons, even with current interest rates, but I'm planning to split it between cash ISAs and funds.

Keep_pedalling

Unpensioned56 said:

Thanks - much appreciate this! It's something that none of the several solicitors and IFAs I've dealt with has mentioned. Absolutely going with multi asset funds not shares. I wouldn't say keeping money in cash is a great plan for long term horizons, even with current interest rates, but I'm planning to split it between cash ISAs and funds.

How old is your son? Once he is 18 the money is his to do with as he wishes. If he is within 5 years of reaching 18 then as the trustee you would be unwise to be putting any of it in long term investments. 

Unpensioned56

He wants it invested and has no plans to draw on it in the next seven years, so that seems the appropriate route.