OIEC's investment

Scott2411

My wife invested in OIEC's with Abrdn for both y children and they were nominated to them. There initials appear at the end of the investment. Are  these investments subject to being captured as part of the estate of  inheritence tax purposes. Also do they get registered for probate 

Marcon

Scott2411 said:

My wife invested in OIEC's with Abrdn for both y children and they were nominated to them. Their initials appear at the end of the investment. Are  these investments subject to being captured as part of the estate of  inheritence tax purposes. Also do they get registered for probate 

When?
How much?
How old are the children?

Scott2411

We've been saving since 2002. but with no instalments recently. Children are now adults. one about £10k each

Malthusian

These will almost certainly be bare trust accounts, but as they were a gift from a parent, the income from the investments will have been taxed as your wife's if it is more than £100pa. 

However that is just a tax issue - they still belong to your children. 

If these were regular gifts out of income and did not affect your wife's standard of living, they will not be subject to Inheritance Tax on her death even if she dies within seven years of making any of the gifts.

As they are now adults, the simplest option is to hand over the money to them to invest in their own name. Unless they are in a higher tax bracket than your wife, this will also solve the issue of the income being taxed as hers.