Inheritance

Cornwallgirl123

Hi all. Just looking for some guidance.  My sons, 16 & 19 have been left a small inheritance that they can have when they're 21. Is a fixed rate saver the best option? Or an ISA?  Feeling overwhelmed with the options! TIA 

Bigwheels1111

18, is the age they are to get the money.

There is an exeption but I do not know what its called.

Look in the search box, magnifying glass top right of screen.

Here is one I found.

https://forums.moneysavingexpert.com/discussion/comment/81822244#Comment_81822244?utm_source=community-search&utm_medium=organic-search&utm_term=inheriting

Albermarle

Cornwallgirl123 said:

Hi all. Just looking for some guidance.  My sons, 16 & 19 have been left a small inheritance that they can have when they're 21. Is a fixed rate saver the best option? Or an ISA?  Feeling overwhelmed with the options! TIA 

If the will just expressed a preference for them not to get the money until 21, that is not good enough.
It has to be written in a certain way and would need some significant input from a solicitor.
Otherwise they are legally entitled to the money at 18.

Regarding what do with it, it depends what you mean by small, and what is the most likely items it will be spent on and when?

El_Torro

Whether it's 18 or 21 conventional wisdom would say this is too short a time frame to invest, better to save. 

One option would be to invest it and speak to your sons about how it's best to keep it invested. Just because they can spend it all as soon as they get it doesn't necessarily mean that they will. 

Seeing as both the beneficiaries are not that young (one is already an adult) it's probably best to decide with them what to do with the money for now, rather than making the decision on their behalf. 

Keep_pedalling

What is the exact wording with regard to their bequests and the 21 year clause? (Redact any personal info)

As others have said these clauses are usually just wishes, because it can be very expensive and a total pain in the backside to manage things like discretionary trusts. 

What is certain is that the bequest for the 16 year old needs to go into trust (unless you live in Scotland). Where to put it really depends on how much we are talking about. Smaller amounts could be put in a cash JISA but for amounts over £9k you need to find a provider who offers trust accounts. 

Cornwallgirl123

So is a fixed rate until the 16yr is 18 the best option. 

xylophone

Presumably you have confirmed that the bequests have "indefeasibly vested" in your sons.

https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem1563

If so, any trust would be a bare trust. Beneficiaries of such a trust have the right to access and control at the age of 18, (16 in Scotland).

You should hold your younger son's money in trust for him.

What is the value of the bequest?