Minors inheriting money - is a trust necessary?

[feepee]

Hello. I'm hoping someone can give me a little advice.

My daughter has just inherited some money from a relative in his will. It's not a huge amount (less than £50k).

My question is - is it necessary to put this money in some kind of legal trust for my daughter? Or is it possible for, say, me to take this money and invest it on her behalf on the promise to give to her at a later point.

A trust seems a bit OTT for this amount of money in my opinion. And myself and my husband feel very strongly that she doesn't receive this money as a matter of course when she turns 18 - we would like some control and flexibility over the timing of her getting the money. An easy way to get around this in my view is to not hold the money in her name! But am I allowed to do this?

I'm sure someone with legal knowledge will be along soon. But, I wouldn't think the money would have to be put into a trust, though it should be in a separate account that is not mingled with your own funds. I think you can arrange a custodial account, that you control.

I have no idea if you could delay the age your dd receives the money past 18. Fwiw, i was interested to read that Prince Harry's trustees changed the date he receives the bulk of his inheritance from age 25 to 30.

It would be wonderful to somehow set the money aside for university costs, and/or a deposit on a property.

How old is your dd?

It's difficult to comment conclusively without seeing the actual clause in the will but if the gift has been made outright to your daughter then it will be held on a statutory trust until she is 18 and the it legally becomes hers. You cannot withhold it from her because you want to.

By all means invest it in a designated fund for her. Do The not have it in your own name. What do you think would happen if you were to die and the funds had your name on them? Who would know that the funds weren't yours and not to include them for distribution in your own estate? The fund should be on the names of "Mrs X as Trustee for Miss X". Your daughter will also need to know about the funds at 18 because if for example she needs to claim means tested benefits then they will need to be taken into account. If she doesn't know they exist them she could inadvertently commit benefit fraud.
If you are a Trustee then you should take professional advice on the investment. I advise you to read the relevant sections of the Trustee Act 2000 regarding your responsibilities in this regard.
Who is administering the estate? Is there a law firm involved ? If so they should be advising you on all this, it's their job !

Many thanks for your helpful comments!

Its my brother who has left the money, both myself and my father (and step mother) are executors of the will. although I've not actually seen a copy of it. My father and step mother are sorting it all out as they live locally (and I don't), and they have more time than me!

My dad does have a solicitor and is taking advice from him, but I don't really know exactly what they've discussed. Something is just going to be presented to me as a bit of a fait accompli I reckon. The plan is for me and my dad to be trustees of this money I think - he doesn't really tell me much (he's not a great communicator!)

I'll try and get some advice about other options when I see what my dad's proposal is.

What planet do you live on where under 50k = not a huge amount?

If you are an executor of the will you should have been given a copy of it. You can ask for it from the solicitor, and you don't have to agree with any proposals.

See what the exact wording is first and then look into what you can do with the money.