Trust accounts

Sann27

My 18 year old daughter has been bequeathed money from my late mum. The will states "Thirty Thousand Pounds (£30,000) to Xxxx on attaining the age of 21 for her own use and
benefit absolutely". The solicitor dealing with the will says me and my sister ( who are the executors of the will ) need to set up a trust account for my daughter to hold this money until she is 21. I was surprised to find none of the high street banks offer trust accounts - it seems a few small building societies (none local to me) and metro Bank do. Does anyone have any experience of a similar situation and recommendations please? I really am unsure where to begin with this and it looks quite complicated. Thank you.

Heedtheadvice

I can only comment as a lay person based upon experience .

In summary I ( as a previous executor several times over) unless there are solid reasons for not holding the funds in trust.

I would change the will through a Deed of Family Variation to nake inheritance immediate. That needs to done by agreement of all the affected beneficiaries and within 2 years of date of death. If there are any qualms about giving daughter the inheritance now as cash then possiblly have her open a fixed term account for two or three years.

Lots of downsides running a small value trust ( such as it would be). Setting up the trust, dealing with HMRC, tax returns and any payments ( especially if you got very high interest - unlikely- or investment returns) bank account, your responsibilities and duties for the next three years, addressing the problem if somehow you could no longer manage the trust. If you have a solicitor as a Trustee that can be safer to manage tut costly as they have professional duties when involved and the resulting charges that entails.

Wills like that are often set so as to pass on inheritance in the sometimes misguided thought of holding off funds till ' maturity' of age or capability to manage. From poor memory on my part of legalities, your daughter might be entitled to the funds already ( your solicitor should advise and other good posters on here can comment.) There can be a time prior to being 21 that there would be a huge benefit from access.

For the DofFV route you could maybe discuss what would she do with the funds as it then gives lots of flexibility.

poseidon1

https://forums.moneysavingexpert.com/discussion/6682406/trust-accounts

What does the will state if your daughter dies before age 21?

Does the money fall back into estate residue of which you and your siblings are beneficiaries or does your daughter have cousins who are similarly entitled to cash sums from your mother and your daughter's money would accrue to them on premature death?

If money falls back to residue, I would seriously consider @Heedtheadvice's suggestion and vary the will to give your daughter absolute entitlement at age 18, thereby extinguishing the trust in its entirety.

Trust funds for such relatively small sums of money are a real burden given the paucity of accessible banking and other service providers. Get rid of the trust, and £20k into an ISA becomes immediately available to your daughter (for example).

Please note, as an ex practitioner in trust matters, I do advocate the use of trusts in appropriate circumstances, this circumstance is not one of them.

xylophone

My 18 year old daughter has been bequeathed money from my late mum. The will states "Thirty Thousand Pounds (£30,000) to Xxxx on attaining the age of 21 for her own use and
benefit absolutely"

See https://forums.moneysavingexpert.com/discussion/comment/81822188/#Comment_81822188