Executor of Estate - underage beneficiary

EstateExecutorQuery

Hello all.

I am the Executor of my late mother's estate.

My mother's Will leaves a large cash bequest to her great granddaughter aged 6.

My solicitor advises that I am responsible for the investment of the bequest until the child reaches 18.

Can I as the Executor open a Junior ISA account even though I am not the parent?

I do not reside in UK, but the child, my great niece, does.

What other investment vehicle would you suggest?

What about investment policy with life cover?

Thank you all for your advice.

xylophone

It would appear that the bequest has "indefeasibly vested" in the minor child - if so, it will be held in Bare Trust for her.


 As you are non resident, I can see a problem arising in respect of setting up a bank account for the Trust -it seems to me that one will

be needed to hold the initial bequest and then to set up any deposit/investment account.


If there is a (non JISA) investment account involved, there will be a need to register the Trust with HMRC.

You should take expert advice. 


Were you a UK resident (while it is no longer easy to find a bank which will open Trustee accounts), you would be able to open such

accounts.


Even then, it would be advisable to appoint a co-Trustee.


It could be possible (depending on the terms of the Trust) for the Trustees to take a decision to release monies from the Trust account

in order to contribute to the child's JISA  but the JISA would have to be opened and managed by the child's parent/guardian, at

least until the child reached the age of 16


It might also be possible (again depending on  the terms of the Trust), to release monies specifically for the benefit of the child - it

would be the responsibility of the Trustee(s) to monitor this.


You should discuss matters with your solicitor -  in view of the fact that he bequest is substantial, you may wish to take the advice of a tax

accountant and an IFA.