Minors inheriting money

[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 not pretending to know anything about the legalities of this but why on earth do you and your husband 'feel very strongly that she doesn't receive this money as a matter of course when she turns 18'?

It was left to her not you.

As for £50k not being a 'huge amount' I think it would make a very significant difference to many peoples lives.

This article might answer your questions.

If the child is under 18 then a will trust will be created with the Executors and Trustees of the Testator being responsible for the safekeeping of the inheritance.Unless the Testator made any specific qualification of when your daughter should receive the inheritance...then it will become hers by right when she passes 18 -you have no interest in this whatsoever and cannot prevent this.All you can do is try to influence her to treast her money with care and responsibility
If you are still in doubt consult a solicitor

50k is a hell of a lot of money to most of the population including me.

Its your daughters money so you can't do anything with it. It will go into trust and pass to her at 18 whether you agree with that or not.

50K is a massive amount of money. Half of that would change my life.

As a teacher of 18 year olds, I can understand why you wouldn't want her to get it at 18. How old is your DD now? If she is at the age of thinking about uni and wanting to go, could you encourage her to use the money rather than landing herself with a life of debt?

Many thanks for all your replies.

She is only five at the moment, so we've got quite a while to see how she turns out at 18!

We do understand that it's her money - we have no intention (or need) of taking it and using it for anything else. We were just concerned about how it could influence decisions she might make at a sensitive time in her life. I appreciate we're probably over-thinking it a bit though!

I think we now acknowledge the fact that she will get it at 18, so now, as suggested, we need to make sure we try and instill the value of money in her over the coming years and encourage her not to waste it all on drink and drugs when the time comes!!

If thought appropriate, could the trustees put it into a 5 year locked-in savings account when she is 17.5? Is that possible?

Does she haveto be told about it? It would be good if she didn't spend her teenage years hankering after it.

Buy a property. This cannot be liquidated on demand to fuel mad purchases and spending but if you look over the 13 years remaining, a decent BTL should pay most of the outstanding mortgage] leaving your child with a property and not just a cash balance in the bank.

Whatever you do, investments not cash.