Need to set up trust until children 21?

[Notnamer]

Please can someone help with what I think should be a simple query (but i have tried googling and not found the answer, so i guess not simple enough for me!)?

My great aunt died recently and has left a will stating that her estate should be split equally between her four great great nephews and nieces (my children and my sister's children), to be held in trust until they turn 21. The sum involved is relatively small (£40k total, and £10k of that is distributable immediately as one niece is over 21) so it doesn't seem worth setting up an actual trust if we don't need to. My mum is the executor, and has been trying to find bank accounts which will only allow access once the beneficiary turns 21, but this seems to be rare/impossible to find. Am I right in thinking that she could just keep the £30k in a savings account/bond until each of the kids is able to inherit their share? I know it's disadvantageous in terms of tax, as the interest will be taxed at her marginal rate, however it seems to be the simplest solution to me if it's permitted.

Thanks in advance for anyone who can advise.

We got around a similar situation by the parents of the children signing a letter to say they would hold the funds until the child reached the required age.
My solicitor (a friend ) sent me a draft, I just got the parents to sign and then I distributed funds once probate was settled.

Thank you (this is OP, different username). That would be an option too, although if we can just leave the funds with my mum that may be simplest as the tax position would be the same if we held them. My mum would prob be happier with that, even though she’d totally trust us not to pass them onto the kids before they’re 21, she’s a bit of a worrier and may feel that she needs to demonstrate control of the funds to fulfil her obligation as executor/trustee!

Sounds like we may not need to set up a trust anyway, which I’m happy to avoid doing.

How does the will word it? If it says something like I leave £x to my grandchildren in trust until they reach the age of 21 then it might well be the case that the will has established the trust anyway. IF so then your mother having a bank account as Ms Z as executor of MsY's Will may be sufficient.

Thanks, I’ll have to check the will again (i’m out at the moment). But I’m certain that a trust hasn’t been set up already. It’s a v basic will that my parents helped her get set up with a local solicitor years ago. There’s no mention of a trust being created in her paperwork and my mum would be aware of it if they’d set anything up. I’m pretty sure the will says the trustee (my mum) is to hold the funds in trust until they each pass 21.

Maybe I should contact the solicitor who did the will to check what they advise. I thought this would be a common situation but am just struggling to be absolutely clear on how it works! If it was just me I’d say I’d hold onto the funds in a savings account til they each reach 21, but my mum will worry if we’re not 100% sure that it’s ok for her to do so!

There's a factor you need to be aware of.
Trusts do not have to be created with a trust deed. Many wills mention 'Trustees and executors' (same person, two words describing their role)
All trust have to be registered with HMRC, under the 2017 Registration of Trusts Act.
In the case of will trusts, if the executors act promptly, and the whole estate is wound up within a length of time(2 years I think, but you need to check), then any possible tax implications are voided.(Trusts normally are subject to tax on their income/interest).

TLDR:
Trusts are complicated.
They exist even if there is no trust deed- they can be and are created by simple wills, even those not keeping money for years for a minor.
Take professional advice.

" I’m pretty sure the will says the trustee (my mum) is to hold the funds in trust until they each pass 21"
This is defo a trust, under the 2017 Act.

If the will was drawn up by a solicitor, it probably creates the trust.

the will says the trustee (my mum) is to hold the funds in trust until they each pass 21.

Is almost certainly a trust then. Yes you should get in touch with the solicitor who drafted the will for your mother who should be able to advise you further.

As the DC aren’t paying tax, it seems a shame someone will be. If it could be invested in bonds that mature at 21, it’s much better financially. Where is the interest going in the meantime? Set up a savings bond for each child and then leave it to mature.

Thanks to everyone who has responded :) I will contact the solicitor who prepared the will and hopefully they can advise properly.