Distribution of assests

poseidon1

Crazycatlady2 said:

They are on benefits and it's much more than that. To put it bluntly I think it's to stop them spending it all on drugs or wasting it all but hopefully a solution can be found 

Depending on age of the person concerned, the £50 per month requirement could be explored on the basis of the executors buying a fixed term annuity.

That is to say in terms of  the value of the 1/5th share, over what term of  years would an insurance company pay the beneficiary £50 per month? 

Certainly if I had been lumbered with such an unreasonable testamentary request, this is what I would look into. Who would want continuing fiscal obligations to some one with drug dependency and other issues?.

doodling

Hi,

The will appears to create a trust in a rather sloppy way - was this drafted by a solicitor?

You need to work out what the terms of the trust are intended to be and consequently the rights of the beneficiary and how the trust will be treated from a taxation perspective 

Practically this could be as simple as distributing the rest if the estate and then setting up a £50 standing order from the executor account to drip feed out this particular bequest.

It is possible, depending on the nature of the trust (i.e. the exact wording in the will) that the beneficiary may be legally entitled to the full amount now if they ask.

You are likely to have to declare this to HMRC if it goes on for more than 2 years.  I have no idea what the tax situation will be but you need to find out.