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

badmemory

It sounds like time to have a very serious financial talk with your son.  Maybe suggest that he has an amount of "fun" money.  What follows must depend on what his future aspirations may be.

CottagePotager

badmemory said:

It sounds like time to have a very serious financial talk with your son.  Maybe suggest that he has an amount of "fun" money.  What follows must depend on what his future aspirations may be.

Indeed. He is pretty sensible and is planning on buying a home with the money. He's not demanding the money now. He lives at home with me and is having a gap year. He has a university place but isn't 100% sure about go to uni. He understands his nan wanted him to be sensible, hence 21.

infj

Yes, how "sensible" is your son? Is he likely to blow it all on a Ferrari or to realise he has been given a massive boost to his adult life? 
Nothing wrong with spending some of it on something enjoyable of course but within reason 😬

CottagePotager

Keep_pedalling said:

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.

My son's not about to take me to court🤣

CottagePotager

infj said:

Yes, how "sensible" is your son? Is he likely to blow it all on a Ferrari or to realise he has been given a massive boost to his adult life? 
Nothing wrong with spending some of it on something enjoyable of course but within reason 😬

As I said, he's planning on buying a house/flat, so he will have no mortgage......lucky boy!

elsien

Well if you think he’s going to be sensible with it anyway, and there’s nothing in the will setting up any sort of trust, then why don’t you just give it to him and he can stick some in a liSA and some are fixed rate bond. 

Depending on what some you’re talking about

CottagePotager

He'd probably be happy for it to go in an account for 1 year that's not accessible. I presume there are such accounts. 

badmemory

It sounds like he has his head screwed on so not a problem there.  I would however suggest to him that he tells no-one about his good fortune.

RAS

Suggest he doesn't share information, it's not just gold diggers but scammers. 

Take a little money for his gap year, and stick the rest in one year funds. So he can legitimately say it's tied up if anyone asks for a "loan" or for him to pay their holiday share up front.

If he does want to go to university, research the impact on student loans as well.

CottagePotager

badmemory said:

It sounds like he has his head screwed on so not a problem there.  I would however suggest to him that he tells no-one about his good fortune.

Quite. Unfortunately he told his girlfriend. They were already together though. I'll have a talk about not telling people if possible.