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Got probate (almost); What do I do with minors' inheritance??

(6 Posts)
Draylon Fri 08-May-15 09:52:39

Just need to swear the Oath.

But- once I have it, amass the funds (house sale included, sigh!) into one place- how do I distribute the 2 under-18s cash? It'll be about £40,000 each.

I gather it has to go into 'bare Trust', but what does that mean??

Is a bare Trust 'a thing'? or is it that the money, say, put into a saving account is 'held in bare Trust', and how do we go about becoming the Trusees of that til the children reach 18?

nicecuppateaandahobnob Fri 08-May-15 09:56:06

You can just put it into a bank account as trustee for x. As it's a decent amount of money though you should probably spread it between high interest bank account and some shares/bonds.

Draylon Fri 08-May-15 16:06:09

But surely there's paperwork to fill out? To prove who the Trustees are etc?

poshfrock Mon 11-May-15 22:18:56

The trustees were presumably named in the Will? Unless the Executors and Trustees are named separately in the Will then the grant of probate will be sufficient proof of trusteeship. Trustees need to follow the guidance set out in the Trustee Act 2000 so if the trust fund is substantial you should take professional advice on investments. If the beneficiaries are very young then just sticking it on deposit is unlikely to be sufficient especially as interest rates are so poor at the moment. You also need to consider whether any access to funds will be required before the beneficiary turns 18 so no point tying it up in a fixed rate bond for 5 years if money is going to be needed for say a school trip in 2. I work in trusts/ probate and we have just set up a trust for 3 beneficiaries aged 17, 15 and 5. The investment strategy for each of the 3 "pots" is very different.

Millymollymama Tue 12-May-15 00:16:49

We put inheritance money for our DDs into various investment bonds after taking advice from a financial adviser. We knew we would not touch the money for 10 years and it has grown - a lot. We have been happy with the advice we received but it was part if the investment advice we receive on all our family investments. Some of the banks have specialist advisers for larger sums of money.

Draylon Tue 12-May-15 19:21:52

No, poshfrock and milly (and thanks for responding)- no Trustees named. I am an executor (and fellow beneficiary); my DC (2 of) are also lesser beneficiaries. Each DC will inherit between £40 and 50K- is that substantial? (yes, of course it is! But I mean 'legally'?).

The DC are (just) 14 and 16.

I have contacted a local solicitor today to organise me swearing the probate oath, but I will get a bit of advice from them about Trusts, as well, but I need to see a financial advisor too, don't I?

I gather that we executors (me and my bro) can't alter the somewhat simplistic terms of the Will ('any grandchildren to share 1/5th') ; in that I'd've insisted that DC could not inherit before 23 or 25, apart from exceptional circumstances; to be agreed between the parents and other executors, for instance. So, the DSs will get their paws on that cash, at 18!

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