Will Trust Beneficiary 18 soon doesn't have bank account (yet)

Keep_pedalling

Children’s cash cards are very limited and I am pretty sure you can’t transfer large sums of money to them or deposit a cheque in them, she is going to need to sort out her own banking arrangements.

Message her again and see if she would be willing to meet you soon after her 18th birthday as possible so you can hand over her inheritance in person. You should also provide her with some documentation as any bank she tries to deposit this with is going to carry out AML checks on the source of funds, so a large transfer into a new bank account could cause her problems. 

parkerparker

Thanks for all the helpful comments. My main concern was that her Mother had suggested using the cash card (over which the Mother will have some parental control). Good news is the beneficiary has agreed to meet me and open an adult personal bank account at the time of Trust Fund closure at a branch where the Will Trust account is registered. This will give me the peace of mind I need. Fingers crossed there will be no issues with ID / proof of address etc. As I have said, what she does with the money after the transfer is none of my business although I hope she uses it wisely in loving memory of her dear Dad. I'll be pouring a large alcoholic drink and toasting my departed friend for not haunting me when all this is finished with..........thanks again all.

parkerparker

QrizB said:

parkerparker said:

The beneficiary has indicated that she has a cash card only which leaves me extremely suspicious that her Mother may have some control over that account.

What exactly makes you suspicious?

I had my first bank account (a Post Office savings account) while I was still in primary school, but I don't recall my parents having any access to it (short of hauling me down to the Post Office and making me hand the passbook over). It was the same for my kids and their Nationwide Flex One accounts. And that sort of duress won't be any different once she's 18.

Why do you think it's any different here?

Suffice to say the Mother wanted the house. Can't say any more but thanks for the concern.

Keep_pedalling

parkerparker said:

Thanks for all the helpful comments. My main concern was that her Mother had suggested using the cash card (over which the Mother will have some parental control). Good news is the beneficiary has agreed to meet me and open an adult personal bank account at the time of Trust Fund closure at a branch where the Will Trust account is registered. This will give me the peace of mind I need. Fingers crossed there will be no issues with ID / proof of address etc. As I have said, what she does with the money after the transfer is none of my business although I hope she uses it wisely in loving memory of her dear Dad. I'll be pouring a large alcoholic drink and toasting my departed friend for not haunting me when all this is finished with..........thanks again all.

Brilliant, when you meet you could always point her to the savings board on this site for advice on where to invest / save her new found wealth.

Have you made an appointment with the bank? Probable worth doing rather than just turn up. 

RAS

Maybe also explain to her the need to keep records of her transactions, not least for AML purposes.

Savings in her name don't affect any benefits to which mum is entitled.

But the income would count towards family income for student finance purposes.

And she may need to do a tax return annually, and may want to shelter £50k by opening ISAs now and in April.

And perhaps fund a gap year?

And perhaps a mention of deprivation of assets?

Flugelhorn

See if she will open a savings account at the same time - even if the rates are not brilliant at least it won't all be going into a current account

thegreenone

Does the bank have a financial advisor that could help her, once the account is open?  I realise the advice will be a bit one-sided but that can change in later years, when daughter is more financially savvy.  

Keep_pedalling

FAs should be avoided especially one associated with a bank, better to find an IFA.

parkerparker

This was all resolved after a being shifted around to various Barclays branches which seemed to specialise in different aspects of the Will Trust closure. In short, the inheritance was transferred to the beneficiary's newly opened account as per the terms of the Will Trust. As I have said before, what the benficiary does with the money is entirely her business and beyond my remit as Trustee.......and also allowed me to avoid accusations of attempting to influence the benfieciary in any way. And yes......her family really are so obnoxious that they would complain if I tried to steer her in seeking advice on how to invest the money. I can't say my departed friend didn't warn me. Really sad. Anyway, I enjoyed a large single malt afterwards. Thanks for the advice / comments.

madbadrob

If you gave her a cheque this would mean she would need to open a bank account in her name.  There would be issues under the money laundering laws but that is cleared up easily with a letter from you and a copy of the will to explain it. 

It's been said before but unfortunately under law which as executor you now have to act so long as you give the money (cheque postal order direct bank transfer etc) and obtain a receipt if not a bank transfer to say she has received it there is nothing more you can do.  If you contact the beneficiary and she says pay it into account xyz then you have no choice but to pay it into XYZ.  

I have just looked ona forum used by lawyers and found a similar but much lower value and the advice given there was to pay the money wherever the beneficiary required but have them sign a letter first with the following statements 

No bank account to receive a payment.
Payment to the account specified is settlement of the claim / entitlement.
(Name) the account holder is my (brother/sister/friend etc)
I will make my own private arrangements to recover the sum from (name)

I know it doesnt help you feel as you have done the best for your late friend but it does follow the letter of the law.

Rob