Inheritance for a child to be held in trust

[bendy75]

Good morning, I received a phone call yesterday from my mums probate solicitor, in her will she gifted all her grandchildren a small sum of money each (£1000), all the grandchildren besides one (who is 11 years old) are over 18 and because of the 11 year olds age a trust would have to be set up so it could not be accessed until the child reaches 18.

My question is that the setting up of a trust (by the solicitors) comes with a fee (approx 495 plus vat) and the said fee would be deducted from the childs gift. not the estate, does anyone know if this is standard practice? It seems quite mean that the child would lose over half the inheritance in fees.

Can you ask for the money to be transferred to a bank account held in bare trust for the child? You can set one up in 5 mins, send them the details so they can see it’s in the child’s name.

Absolutely no idea if you can, just a suggestion to ask them.

That's half of the value and way over the top! Can't it just go in a child ISA or something? I'd get a second opinion on this.

We had a similar thing for the same amount of money. Executor wrote a cheque to the child and I set up a bank account in the child’s name and paid it in.

As another poster has said, why not just open an account, for example a junior isa, and put it in there?

I don't think this is correct at all. The will automatically creates a trust and no need to set up a formal trust.

I agree, the solicitor is trying it on. The executors will hold the money on a simple trust until the kids reach 18 and can piss it up against a wall.

Neds no more than that.

Thank you for all the replies and advice, the solicitor is the executor so unsure why they can't set up a simple trust, I shall be on the phone as soon as they open, hopefully they have not just gone ahead and done it.

Why does a trust have to be set up?
Why does the £1k have to be protected until the child is 18?

(the answer to both is that it doesn't, so who's thinking this is required?)

I was wondering this too, does it say in the will it has to be in a Trust until 18?

I have no idea, the will says,

"I give the sum of £1000 to my granddaughter XXXXXX XXXXX of XXXXX XXXXX XXXXX for her own use and benefit absolutely upon attaining the age of eighteen years"

Ok the will stipulates she can't access it until 18. So open a junior ISA yourself (or ask parents too if that's not you, or perhaps she has one already...) - Google to find out what they are and the one offering best rate - and ask solicitor to transfer all the money to that. They are trying to rip off the child by opening a Trust and keeping half the money - don't let them.

The problem is that this is a contingent gift. To receive it, your child must first reach the age of 18. In the very unlikely event that she did not reach that age the money has to be returned to the residue of the original testator.