Putting childrens inheritance into trust

[karmaz]

My Children have been left £40,000 each from their grandparent. It was stated that the money should be held in trust until they are 18. So for the youngest that is 6 years away. How do I go about this ..looked online all looks so comlicated /expensive . £1000 each to set it up ? Any advice gratefully received.

*complicated that is

You can just look after the money in their name, you don't need an official trust document. Held on 'trust' means exactly that. You would have an assumed trust. Keep good records

Ok...thanks for info.

If the children were left the money under a Will then the Will is the Trust document. You do not need to set a trust up yourself iyswim. The Will will govern the interests of the beneficiaries and for some Trusts income for minors bears tax at trust rates of upto 45%. See link.

www.gov.uk/trusts-taxes/trusts-and-income-tax

So be careful. I know of cases where Hmrc have gone back a number of years to collect said tax plus interest and penalties.

An hour spent with a decent trust solicitor to clarify the trust you have would be time and money well spent. Expect to pay c£200-£250 per hour plus vat.

I'm not a solicitor but work in a similar field.