Grandfather’s gift in will to grandchild - how is it paid

[MGMidget]

One of my children was left a financial gift in my father’s will. The sole executor is my brother and he sent a cheque from him made payable to me. Is this how it is normally done? I am concerned that this might not be the right way to do it and cause complications with tax. I am not supposed to be the recipient of the gift and after cashing the cheque I would then have to transfer the sum to an account or investment vehicle for my daughter. Is this how a payment to a grandchild in a will is normally done (ie paying the parent of the child)? Am I right in thinking this might be a tax complication (ie counted as two transfers - one from my brother to me and then another from me to my daughter, neither counting as a transfer of part of my father’s estate to my DD which is supposed to happen? She is only 7 in case that makes a difference in how things should be done!

When our children were left money in a will we had to open up savings accounts for them in preparation and the money was directly transferred to them. The accounts are savings accounts, created as sub accounts to mine, but we were told the money had to get transferred directly to accounts in their names. I guess it depends on the sum of money?

Could you quickly open a savings account in your child's name, and ask your brother to rewrite the cheque so it can be deposited straight into the child's account?

My children’s inheritance was paid to me. I cashed the cheque and then transferred it into their accounts. No problem doing it this way.

There's only an IHT issue if you have a large estate and die within 7 years.
I guess if you claim benefits and the money goes via you it could be counted as deliberately giving money away?
If it is a sizeable amount then a lot to be said for making sure you keep control until they are 18, and possibly if needed 'lock it away' for them in a 5 year no touch account when they are 16 (eg if going off rails).

When my Dad died, my brother was executor. He transferred the money to my account, and I distributed it to my children by bank transfer. In the case of bequests to the great-grandchildren, my children, their parents, then paid the money into savings accounts for them.

I was thinking of asking fir it to be paid directly into DD’s child trust account which already exists which would mean she couldnt touch it until 18 and it would be a tax free account. I think the issue if it is a payment to me is that it could count as me having received a gift, the also paying a gift to my DD. Not necessarily a problem but might be if there are more gifts/ transfers to take into account or if I die in 7 years?

Ps its a few thousand to answer Iguanainanigloo’s point.

We put it straight into their bank account - opening a child’s account is fairly straightforward

If not in receipt of any means tested benefits it shouldn't present a problem but if you are on UC etc and it takes you temporarily over 6k then not a good idea.

It really should go directly to the child just to avoid complications. It’s a simple thing for him to do. As long as you have an account ready it’s not a problem.