Adult daughter wants money from Will trust "on account" from her inheritance

village_goose

Hi, my adult daughter is asking for money to help with mortgage payments over the next couple of years.  The Will trust (of my second wife) stipulates all five children (from both our previous marriages) receive the same amount on my death.  Is there a way I can legally lodge on the record that this money has been paid to her and thus, on my death, the amount she receives takes account of this.
Plus, which is the most tax efficient way of dealing with the transfer of money - gift, loan ...?

Many thanks for any thoughts ...

Keep_pedalling

This sounds like an immediate post death interest trust. I am not sure if it possible to do what you want to do here without winding up the whole trust. If you don’t actually need the income that may be an option for you. You should probable take professional advice on this one.

village_goose

Thanks - I'm not sure what you mean in reference to income.  My late (2nd) wife and I made a mirror will, and a simple will trust that ensures all the children receive the same amount on the surviving parent's death.  One of my children is asking me for some money over the next couple of years which I'm happy to do from capital.   I want to be fair to all the children from both marriages by finding a way for this 'up front' amount to be counted against her share of inheritance when I die.  What do you think?

Keep_pedalling

village_goose said:

Thanks - I'm not sure what you mean in reference to income.  My late (2nd) wife and I made a mirror will, and a simple will trust that ensures all the children receive the same amount on the surviving parent's death.  One of my children is asking me for some money over the next couple of years which I'm happy to do from capital.   I want to be fair to all the children from both marriages by finding a way for this 'up front' amount to be counted against her share of inheritance when I die.  What do you think?

That is not how this sort of trust works. The most common use of these trusts is with the family home, with the first spouse to die share of the home going in to trust but the surviving spouse retaining the right to live there for life.

This can also apply to other assets, so I could leave a sum of money in trust with my wife have the benefit of any income but the capital held in trust for my children, which is what I thought you were referring to in your opening post.

So just to clarify what the situation is, what was the exact wording of your wife’s will relating to the trust? (Personal details redacted of cause).

xylophone

Your house was held as tenants in common and your wife's will left her share to you for your lifetime but ultimately in equal shares to the children?

With regard to money/shares held at death, the will directs that you are entitled to any income arising but the capital goes to the children at your death?

poseidon1

I see from your responses so far there may be a degree of misunderstanding about the 'trust' arrangement  supposedly established by your wife's will and what you are permitted to do under the terms of such a trust, so more facts please:

* What is the size of the trust fund?
* Is it wholly or partly invested in stockmarket securities?
* How much is the annual gross income you receive from the trust?
* Does the Trust document ( your wife's Will) give the trustees power to advance capital to remainderman, to the detriment of the life tenant ( yourself) income rights?
* Speaking of trustees, who are they ?
* Are annual trustee accounts prepared for the trust fund?
* Are the other siblings onboard with regard to this request and happy to sanction it even if it diminishes their capital expectations ( particularly an issue if trust capital is currently invested)

Now it maybe none of the questions above are relevant to you, since despite you using the expression Will Trust,  there maybe no actual trust  in place ( ie an entity required to be registered with HMRC for tax purposes). So as suggested by Keep_pedalling please supply the exact wording in your wife's will which purportedly established an ongoing trust.

 

DRS1

I assume you have money of your own - not everything is in the will trust?
Why can't you just give her some of your own money?
If you want to make sure this is taken into account against her share of your estate then rewrite your will to say you have given her £X and so her share is 20% - £X.
Or give the same amount to all the others and leave the will alone.