Financial advisor - Scotland - inheritance issue

drspouse

I am an executor of my late mother's estate and she left a considerable portion of the estate to two young adult relatives (one just turned 20) who live in Scotland (Central Belt).

We executors are sure that these relatives should seek financial advice about the best way to deal with their inheritance but we have no good way to find one for them. I'm not convinced my Googling will help and other Scottish relatives are of the mind that "it's a nice problem to have but I've never needed one".

We needed a valuation too but chose a chartered surveyor. We aren't sure what the equivalent would be for financial advice, and we are talking two students who've never had to think about money before, not trust fund babies who have the family solicitor round for sherry!

RAS

In Scotland, if the beneficiaries are over 16 years old, they are usually entitled to inherit and to make their own mistakes, however awful the adults around them feel.

I'd have been reasonably sensible in that situation but based on their "schemes to get rich" I would expect my sibling or niblings to go through any inheritance like a dose of salts. Apart from one nibling who has their head screw on.

oldernonethewiser

You could suggest that they get financial advice but it would be up to them to sort that out for themselves, should they wish to do so.

drspouse

I should further clarify that they have asked for advice but probably don't know there's such a thing as a financial advisor; we shouldn't be giving them financial advice as we are the executors; and that their portion of the inheritance a) could include property and therefore they need to decide whether to sell or keep and b) is in trust till they are 25 but they are different ages so need to decide what to do when one of them turns 25 and the other hasn't.

ETA they do have their heads screwed on but have decisions to make at some point.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82156938#Comment_82156938

If as you say their inheritance is held in trust contingent on each attaining age 25, then it is not them that needs investment advice, but you as their trustees assuming you have been appointed in that capacity by the Will.

Trusts are a steep learning curve for those who have no experience in the matter, so isn't there a competent solicitor in the background who has explained to you the tax implications of this trust arrangement prior to the children's attaining age 25 ?

If not, I reccomend you seek advice from a STEP qualified solicitor ASAP to explain your trustee duties especially in the context of what appears to be a Scottish based trust.

STEP is The Society of Trust and Estate Practitioners, which is the specialist branch of the profession with considerably more training and experience in trust and probate matters than the average lawyer - link below -

https://www.step.org/branches/step-scotland

A STEP lawyer maybe able to effect an introduction to investment advisers with trust investment competency. Worth noting in this regard that during the currency of the trust, the decision making related to whether to keep the property, usually vests with the trustees not the beneficiares.

Finally note that trusts are required to register with HMRC per below -

https://www.gov.uk/guidance/check-if-you-need-to-register-a-trust

born_again

Even calling into their bank & saying they are getting a inheritance would get some advice, but may only be on their own products.

Better than nothing.