Trust fund for inheritance

Brownaldo

Hi

Looking for help with this one…my parents have passed and wanted to leave money for my niece and nephew. The siblings are looking to put the money into a trust until they are both 21. It’s around £50k each so no inheritance tax implications. I can’t get my head round which type of trust to use or which bank to use. Has anyone got any experience of this? What we don’t want to do is make it liable for tax by making the wrong decision. Thanks 

Keep_pedalling

Unless the will creates a trust you can’t do this even if the will specifies they should not receive their legacy until they are 21.

How old are they now? 

Does the will create a discretionary trust? Does the will say they should receive their bequest on a reaching the age of 21 AND have a clause stating that the bequest goes to someone else should they die before reaching their 21st birthday?

If neither of the above apply then unless they are minors they are both entitled to their bequest now. If they are minors then each bequest needs to be held in a bare trust until their 18th birthday (16 if this is a Scottish estate) when they have the right to receive it in full. 

Albermarle

As above and if that is the case, then at least you will not have all the cost and hassle of setting up two discretionary trusts. So the niece and nephew will at least get the full £50K and not minus all the legal fees.

Maybe you could say to them that your parents ( and you) were worried they would blow it all, their hard earned money etc
So a bit of emotional pressure.
Also you could volunteer to help them to find a suitable home for it.

xylophone

my parents have passed and wanted to leave money for my niece and nephew.

But did they?

Or do you mean that the parents left everything to their children on the basis that they would "do the right thing" by the grandchildren?

Or that neither parent left a will but the widow (er) of the first to die inherited everything and there is now an intestacy?

Or.....?

poseidon1

xylophone said:

my parents have passed and wanted to leave money for my niece and nephew.

But did they?

Or do you mean that the parents left everything to their children on the basis that they would "do the right thing" by the grandchildren?

Or that neither parent left a will but the widow (er) of the first to die inherited everything and there is now an intestacy?

Or.....?

Yes there is ambiguity here that needs to be clarified.