Inheritance for kids

[Justadj1305]

Hi all, sadly I lost my mum in December. She has left a small amount of money to her grandchildren. My eldest son is entitled to his immediately as he's over 18. But my youngest isn't able to access his until he turns 18. This is stipulated in my mum's will. I'm looking for advice on a trust fund for my youngest son. He's 11, 12 this year. I'd like to have a fund that he isn't able to access until 20 years old. I'll also be adding around £500 from my inheritance. Can anyone advise please? Thanks in advance.
Side note, he already has a bank account that family pay into for Xmas and birthdays, I'm unsure of the balance, but I'm thinking it may be sensible to transfer that money into a trust account too. His current bank account doesn't have a stipulation stating when he can withdraw.

If the will states that he can access at 18, you cannot put into something that he cannot access until 20.

If it was your mum’s wishes that your sons can access the money when they are 18 it is not up to you to decide your youngest can’t access his share until he is 20. That would be against the terms of the will. If you want to stipulate 20 for any money you give him that is different, but the money would probably have to be held separately.

Trusts are great for large amounts of money, where the interest gained by the tax efficiencies can offset the set up charges, and ongoing administration.
For smaller amounts it may be worth looking at a junior isa or a children's savings account - many come with rules locking the money away when the child reaches 18.
It's worth looking at tax rules too. If the moneys been left directly to your son in the will it won't be subject to the same restrictions, But if it's sat in your account and you give it to him, he can only earn £100 internet per year before tax starts being payable. So at 4% that's anything over around £2,500.

as above, setting up a trust is expensive and only worth it really if we’re talking six figure sums. Also as mentioned above I’d just open a child isa for him which becomes legally his at 18 , and you can contribute to it. There are annual limits on contributions so again you may need to feed the money in over a number of years.

if course this isn’t guaranteed to work, but we have openly discussed with our dc that while their Isas become legally theirs at 18 they are for house deposits and need to be kept in a tax free isa wrapper and drip fed into a LISA. They’re mid teens now and while they joke about spending the isa at 18 I think they get it and know it’s not just a big holiday fund

it sound like you are talking about 10k or so in which case an aj bell/vanguard/whoever JISA does the job just fine...
You get 9k oer tax year and its coming up to april so you have 18k to play with.

If its 100k maybe look at a trust...

Re your 500 please just put it in an adult s&s isa (ie keep it in your name) and let it grow / add to it. You can gift it to your child at 18 or whenever and its all tax free.