16 year old's inheritance monies

xylophone

No need to register with HMRC

https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23160

Though there is no general exclusion from registration for bare trusts, trusts created as a requirement of opening a bank account for a person under the age of 18 or a person lacking mental capacity are excluded from registration as express trusts (Sch3A(6A) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017).

Not all types of child savings accounts involve trusts: for example Child Trust Funds and Junior ISAs are not trusts and therefore are not required to register on TRS (see TRSM10030).

DavidT67

xylophone said:

No need to register with HMRC

https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23160

Though there is no general exclusion from registration for bare trusts, trusts created as a requirement of opening a bank account for a person under the age of 18 or a person lacking mental capacity are excluded from registration as express trusts (Sch3A(6A) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017).

Not all types of child savings accounts involve trusts: for example Child Trust Funds and Junior ISAs are not trusts and therefore are not required to register on TRS (see TRSM10030).

Seems very strange that HMRC don't view CTFs and JISAs as trusts.  Or is it that they are trusts, just not bare trusts?

missfunkymonkey

poseidon1 said:

DavidT67 said:

Note, the age of majority is sixteen in Scotland.  OP has not stated which country of the UK they reside in.  So one or more of the beneficairies may not be a minor.

A valid observation. However a previous post by the OP indicated parents were resident in E& W by virtue of reference to Probate for the previously deceased father rather than Confirmation.

That said of course , OP and son could themselves be Scottish resident, which would raise an interesting question as to whether an executor h to English law, can ignore English strictures and pass funds direct to a 16 year old Scottish beneficiary. I  suspect English Law would overide and still require parental receipt.

No doubt OP can advise if there is a Scottish dimension here.

Yes, all family members are in England so no Scottish laws for us to worry about. To be honest, my 16yr old is very sensible with money/savings and I wouldn't have any concerns with if the rules allowed the full amount to be in their account. The NS&I growth bonds you've suggested look interesting, thank you.  When I was looking around for a Child's Trust account recently, I opened it with Skipton and put the full 30k in there as I couldn't find many others offering them. It's an easy access account but the interest rate is a disappointing 2.05%. So could I move 9k to their JISA allowance for the current year, keep 9k in the Skipton trust account until the next tax year starts and move the remaining 12k to an NS& I growth bond paying a much better rate for a couple of years until they're 18? It's also good to know that I don't have to register it with TRS so thanks to everyone who commented. 

Keep_pedalling

Is it worth using a cash ISA? The OPs son is unlikely to have enough income to cause them to become tax payers so better interest rates are likely to be had outside an ISA. 

poseidon1

missfunkymonkey said:

poseidon1 said:

DavidT67 said:

Note, the age of majority is sixteen in Scotland.  OP has not stated which country of the UK they reside in.  So one or more of the beneficairies may not be a minor.

A valid observation. However a previous post by the OP indicated parents were resident in E& W by virtue of reference to Probate for the previously deceased father rather than Confirmation.

That said of course , OP and son could themselves be Scottish resident, which would raise an interesting question as to whether an executor h to English law, can ignore English strictures and pass funds direct to a 16 year old Scottish beneficiary. I  suspect English Law would overide and still require parental receipt.

No doubt OP can advise if there is a Scottish dimension here.

Yes, all family members are in England so no Scottish laws for us to worry about. To be honest, my 16yr old is very sensible with money/savings and I wouldn't have any concerns with if the rules allowed the full amount to be in their account. The NS&I growth bonds you've suggested look interesting, thank you.  When I was looking around for a Child's Trust account recently, I opened it with Skipton and put the full 30k in there as I couldn't find many others offering them. It's an easy access account but the interest rate is a disappointing 2.05%. So could I move 9k to their JISA allowance for the current year, keep 9k in the Skipton trust account until the next tax year starts and move the remaining 12k to an NS& I growth bond paying a much better rate for a couple of years until they're 18? It's also good to know that I don't have to register it with TRS so thanks to everyone who commented. 

Yes, I can see no major issues with your plan to obtain better interest returns via the other options available. These options are useful in educating your son when he eventually takes them over.

However in the case of the NSI growth bonds it does require an old fashion cheque to open the account, so hopefully that is possible via the  Skipton account.

xylophone

https://www.moneysavingexpert.com/savings/junior-isa/

You (or indeed he) may open a Junior ISA - if there is a problem with Skipton's making a direct payment to the JISA with (say) Coventry, presumably you (or he) could open the Skipton JISA then arrange with (say) the Coventry to transfer out?

https://www.skipton.co.uk/savings/childrens-savings-accounts