Diverting inheritance to my child

[Kevinschillipot]

I’m about to inherit money I dont need. My first thought is to pass it on so that DS inherits when he’s older. He’s 12.

I’ve read about Deeds of Variation. Can these be done to redirect an inheritance to a child (assume it goes into a trust?). I would want it to be available for when hes 25 (old enough to hopefully have found his own path in life and be mature). I guess the benefit of this is that I avoid tax inplications of simply gifting him the money when the time is right. I guess the downside is that I have no control over it and how he spends it.

Is this as simple as getting a deed of variation completed, or can this not be done for a child?

i just opened up a high rate savings account, tagged it with my dd's name and will transfer the money to her when appropriate.
yes, it does mean the interest generated on the sum gets added to my "income" and based on my income bracket i might pay some taxes on it.
but no lawyer no hassle, it's in my name and i have zero doubt that i will hold it in savings appropriately.

A trust will only happen if one is set up, it doesn't happen automatically.
Trusts are only really worthwhile if the sum is over £1m.
Inheritance tax is payable regardless of age of it is due.
Children will pay tax on interest beyond a certain amount.

Trusts are often complicated and expensive. I agree with pp, invest it yourself then pass it on at the appropriate time.

I’m an older mum. I’ll be late 60’s when he’s 25, so I thought that deed of variation now would be easier if it could count as liable for inheritance tax if within 7 years of my dying and also potential to be viewed as deprivation of assets if I subsequently had care needs.

Yes a deed of variation can do this. You’ll need to talk to a lawyer about getting it all set up properly especially if you want a trust that keeps the money locked up until son is 25 (rather than 18)

Agreed DoV is way to go - I’d check with a lawyer whether you can divert it to a will trust …otherwise account in his name and hope he’s sensible at 18.