Inheritance advice

Zoekate2

Hi I'm 53 & due to inherit from my Mums estate once probate is sorted probably in the early part of next year. It will most likely be around £50,000 & my son around £20,000. He's 14 so it has to go into a trust until he's 21. I've never ever had anything like this amount of money & feel very overwhelmed by it all. Also sadly, this inheritance will also give me the financial freedom to leave my Partner so I'll be renting somewhere too. Any advice would be gratefully received.  Also any advice on how to go about sorting a trust for my sons share too. 

Alderbank

Do you claim any benefits?

Keep_pedalling

Zoekate2 said:

Hi I'm 53 & due to inherit from my Mums estate once probate is sorted probably in the early part of next year. It will most likely be around £50,000 & my son around £20,000. He's 14 so it has to go into a trust until he's 21. I've never ever had anything like this amount of money & feel very overwhelmed by it all. Also sadly, this inheritance will also give me the financial freedom to leave my Partner so I'll be renting somewhere too. Any advice would be gratefully received.  Also any advice on how to go about sorting a trust for my sons share too. 

It is actually unlikely that your son’s inheritance can legally be withheld from him until he is 21, although a lot of wills have these clauses in very few are enforceable because that requires either a discretionary trust to be set up or a conditional inheritance where an alternative beneficiary is named in the case of your son dies before his 21st birthday. These are not often used because of the complexity and costs involved.

Assuming this is the case his inheritance need to be placed in a bare trust and with only 4 years until he is 18  a cash account is the best option. Finding a trust account that pays reasonable invest is the difficult part. Skipton BS are one but I am sure there may be better options.

https://www.skipton.co.uk/savings/childrens/childrens-trust-saver

Are you the executor? 

Zoekate2

Yes my sister & I are executors, she chose not to be a beneficiary. It was a stipulation in my Mums will that my son would receive his part only when he turned 21. 

poppy12345

You didn't answer this question. 

Alderbank said:

Do you claim any benefits?

If so which ones exactly?

Zoekate2

Yes my Partner & I claim UC , also he has the full LCWRA & another element for his health too

Zoekate2

poppy12345 said:

You didn't answer this question. 

Alderbank said:

Do you claim any benefits?

If so which ones exactly?

I didn't see it sorry

poppy12345

With Capital of more than £16,000 your UC will end. If you have any debts to pay you can pay those without it being treated as deprivation of capital. 

If you're claiming council tax reduction that will also end. 

Zoekate2

Yes I knew that it was more advice on ISA's,  savings etc I needed 

poppy12345

Zoekate2 said:

Yes I knew that it was more advice on ISA's,  savings etc I needed 

This is the welfare benefits section. You'll be better off posting in the savings and investments section. 

Grumpy_chap

Zoekate2 said:
 this inheritance will also give me the financial freedom to leave my Partner so I'll be renting somewhere too

Sorry for your loss.

As well as ending both of your UC claims because of capital, your partner may claim half the inheritance as joint (marital) assets of the relationship.