Can executors use their discretion in execution of a will.

DE_612183

Ok, so query is this.

My MIL left sums of money to her grandchildren and great-grand children.

The grand child is a single mum who struggles with organisation and money - I know we can't do anything about the money that has been left to her but to give it to her, but I'm concerned the money for her child ( the great grand child who is only 12 ) will be used up before they gets a chance to use it themselves.

Is there any way we can pay it into a trust account that can't be touched until they are 18, or would that have to expressed explicitly in the will?

Thanks

km1500

not sure how much money you are talking about but for example could you ask the parent to open a junior isa and pay it into there (max 9k pa I believe)

DE_612183

km1500 said:

not sure how much money you are talking about but for example could you ask the parent to open a junior isa and pay it into there (max 9k pa I believe)

It's only £1000

lisyloo

Is this a handwritten will? i.e. no provision for what is do be done with underage beneficiaries?

The executor can look after the money until the child is 18 and have a duty to make sure the child gets the inheritance.
A separate account would be a really good idea, not sure on products.

you say "we".
Who did she appoint as executor(s)?

FlorayG

If the money is just given with no restrictions then it belongs to the child to spend how she wants; however, you could put it into an account that requires the executors signature in order to withdraw money? That way you will be sure she's withdrawing it to buy Lego and not to pay the electricity bill 

DE_612183

lisyloo said:

Is this a handwritten will? i.e. no provision for what is do be done with underage beneficiaries?

The executor can look after the money until the child is 18 and have a duty to make sure the child gets the inheritance.
A separate account would be a really good idea, not sure on products.

you say "we".
Who did she appoint as executor(s)?

No, not handwritten - witnessed by a solicitor - it does say that if under 18 receipt by parent or guardian is full and sufficient discharge

Myself and my wife...

lisyloo

I'm assuming you're in England not Scotland but as executors you are liable for your actions.
If you think the mother can't be trusted (I mean disorganised as opposed to dishonest) then you should make sure the money is kept for the child.
There may be products available for this, if not you could still put it in a separate long term account - the law says 18 so you know the exact term.
You are not going to be sued by anyone for keeping the money safe for the child.
If the mother questions it then you simply say you are following advice
Personally I'd definitely keep it separately from my own money.

FlorayG

DE_612183 said:

lisyloo said:

Is this a handwritten will? i.e. no provision for what is do be done with underage beneficiaries?

The executor can look after the money until the child is 18 and have a duty to make sure the child gets the inheritance.
A separate account would be a really good idea, not sure on products.

you say "we".
Who did she appoint as executor(s)?

No, not handwritten - witnessed by a solicitor - it does say that if under 18 receipt by parent or guardian is full and sufficient discharge

Well then clearly it has to be given to her mother. Can you arrange with the mother to open a savings account for the child with it? I'm sure she won't WANT to spend her daughter's inheritance, it's just that if it's in with her own money it might just be lost

theoretica

My understanding is that the default for inheritance under 18 is it should be put into a trust fund until 18.  The will allows that a receipt by the parent satisfies the duties of the executor - as legally the child cannot sign a reciept.  The suggestion about a junior ISA looks like a simple solution to me.

Keep_pedalling

FlorayG said:

DE_612183 said:

lisyloo said:

Is this a handwritten will? i.e. no provision for what is do be done with underage beneficiaries?

The executor can look after the money until the child is 18 and have a duty to make sure the child gets the inheritance.
A separate account would be a really good idea, not sure on products.

you say "we".
Who did she appoint as executor(s)?

No, not handwritten - witnessed by a solicitor - it does say that if under 18 receipt by parent or guardian is full and sufficient discharge

Well then clearly it has to be given to her mother. Can you arrange with the mother to open a savings account for the child with it? I'm sure she won't WANT to spend her daughter's inheritance, it's just that if it's in with her own money it might just be lost

I don’t think it has to be given to the child’s mother it just says it enough to discharge the executors duty. Clearly the executor does not trust this person, and it would be foolish just to hand it over. If it was me I would be keeping it in a trust account until the child was 18 then give hand it over to them.

lisyloo

I would also be keeping it in an account and getting some interest (not investments).
The executor will not be sued by anybody for keeping the money safe for the child.
I agree it doesn't say it has to be passed to the parent.