Asking for inheritance to be paid to children

mark1234567890

Hello,

My grandmother passed away this year and my mother received some money from the estate. She would like to gift this money to me and my 2 siblings.

However, I would like this money to go directly to my children so I can save it/invest it for them. Can I ask my mum to write cheques directly to them and I could pay these into a children's savings account and/or a Junior stocks and shares ISA?

Would this save some tax?

Thanks

Keep_pedalling

How old are your children? How much are we talking about? Is your mother’s or your estate likely to be subject to IHT?

sheramber

What tax are you concerned about?

Your mother could pay the money into your children's accounts herself.

badmemory

I am sure someone will correct me if I am wrong.  If a parent opens an account for a child then the interest on the money is taxed as if it was the parents saviings interest.  But not if a grandparent opens it.

sheramber

badmemory said:

I am sure someone will correct me if I am wrong.  If a parent opens an account for a child then the interest on the money is taxed as if it was the parents saviings interest.  But not if a grandparent opens it.

Not quite.

Any interest over £100 from money from a parent is taxable on parent, depending on how much of the Personal Savings Allownce in available.

https://www.gov.uk/savings-for-children

DRS1

mark1234567890 said:

Hello,

My grandmother passed away this year and my mother received some money from the estate. She would like to gift this money to me and my 2 siblings.

However, I would like this money to go directly to my children so I can save it/invest it for them. Can I ask my mum to write cheques directly to them and I could pay these into a children's savings account and/or a Junior stocks and shares ISA?

Would this save some tax?

Thanks

Are we talking about varying your grandmother's will?  If your mother is doing that to say that money she would otherwise have inherited goes to you and your siblings then you may as well get her to change it so your share goes to your kids.

badmemory

I was a little concerned this might involve setting up a trust, we have been assuming these children are underage.  If they aren't then varying the will would be the answer.  If it is within the 2 years.

DRS1

I imagine there would be a receipt clause in the will allowing a parent to give a receipt for a payment due to a minor.  If not there may be some legislation which permits it.

xylophone

https://www.gov.uk/alter-a-will-after-a-death

Your mother could divert the inheritance to her children/grandchildren as required.

The maximum could be contributed to a stocks and shares ISA for each child and the balance held in something like this

https://www.skipton.co.uk/savings/childrens/childrens-trust-saver for each child and moved into JISA as required each tax year.

There would be no complication of having to register the child  cash saver account  as a Trust with HMRC and the JISA is similarly exempted from this requirement.

https://www.litrg.org.uk/tax-nic/trusts-and-estates/trust-registration-service

Bank accounts holding cash on behalf of a minor child or a person lacking mental capacity are not registerable. You can read more about this exemption on GOV.UK.