Where to put inheritance money for son until he reaches 21?

CottagePotager

Hello
My mum sadly passed away and has left a sizable chunk of money (almost 200k)for my son. In her will she stated he was to receive it when he is 21. As an executor, the money is coming to me. Do I set up an account in his name that can't be accessed until he is 21? Presumably it needs to be in his name only? How does it work? What sort of account?

He is 19 now. I'd like to follow mums wishes.

Thank you

elsien

You can’t set up an account in his name and if he sets it up himself, he can access the money whenever he likes.
People who specify “can’t get the money until a certain age” Generally speaking, don’t understand that apart from in certain limited circumstances with Trust et cetera it’s not enforceable.

what is the exact wording in the will? 

CottagePotager

Don't have will to hand but something like "to receive x% share on reaching 21"

CottagePotager

Should I keep the money myself in an account in my name but then what are the implications for tax, and what if I die before he's 21

Keep_pedalling

The exact wording is very important. It is actually quite difficult to include an enforceable age clause in a will as to do so requires either a discretionary trust or a conditional clause that moves the bequest to an alternative beneficiary if the primary one dies before reaching that age. Both options make life complicated to the trustees so are rarely used, and the age restriction is really no more than a wish. 

If your son has been left this money absolutely then is is actually entitled to the money when he reaches 18 (16 in Scotland) if he is still a minor then it need to be held in a bare trust until his 18th birthday. 

Keep_pedalling

CottagePotager said:

Should I keep the money myself in an account in my name but then what are the implications for tax, and what if I die before he's 21

How old is he now?

QrizB

Keep_pedalling said:

CottagePotager said:

Should I keep the money myself in an account in my name but then what are the implications for tax, and what if I die before he's 21

How old is he now?

Stated in the OP above:

CottagePotager said:

He is 19 now

Emmia

As he's over 18 and an adult, he should just receive the money.

Keep_pedalling

Emmia said:

As he's over 18 and an adult, he should just receive the money.

Although that is likely to be the case,  it does depend on the exact wording of the will so until we know what it says we can’t be certain. 

Baldytyke88

CottagePotager said:

In her will she stated he was to receive it when he is 21. As an executor, the money is coming to me.

The executor's primary duty is to carry out the instructions in the will, including managing the estate and distributing assets according to the terms outlined.

Keep_pedalling

Baldytyke88 said:

CottagePotager said:

In her will she stated he was to receive it when he is 21. As an executor, the money is coming to me.

The executor's primary duty is to carry out the instructions in the will, including managing the estate and distributing assets according to the terms outlined.

True, but in this case the law could very well overrule a clause, that is no more than a wish, that a beneficiary should not receive their inheritance until they reach 21. If that is the case the beneficiary is entitled to receive their bequest now, and it would be a lot easier for the executor just to distribute that bequest.