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Large sum of money left to 15 year old daughter

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  • Large sum of money left to 15 year old daughter

    Hi I hope someone can offer advice.My father died last year and left a large sum of money to my daughter who is only 15.I have no idea what to do with the money it is due to be distributed in the next few months can it be invested? does it need to go into a trust fund? if so what bank/building society is best?

    I really want the money to work for her so she gets some interest she is not 18 until 2019 and the sum involved even at 1% would generate a fair amount of interest.Our solicitors are handling probate.
    Any advice would be appreciated.
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  • #2
    Re: Large sum of money left to 15 year old daughter

    get it put into a Trust Fund until say she is 25 yrs old at least. a free interview with a probate solicitor should be in order for v, i.e. usually a 30 free consultation can be given = just my thoughts.

    see what others say on here??
    [MENTION=61310]diana[/MENTION]M

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    • #3
      Re: Large sum of money left to 15 year old daughter

      tagging [MENTION=87380]Diana M[/MENTION] [MENTION=39710]des8[/MENTION] [MENTION=85500]Peridot[/MENTION]
      Debt is like any other trap, easy enough to get into, but hard enough to get out of.

      It doesn't matter where your journey begins, so long as you begin it...

      recte agens confido

      ~~~~~

      Any advice I provide is given without liability, if you are unsure please seek professional legal guidance.

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      But please include a link to your thread so I know who you are.

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      • #4
        Re: Large sum of money left to 15 year old daughter

        I agree with Di. Set the trust up as a discretionary trust. Specifically to provide "extra comforts". If this is done right and she has no right to the money you should be able to not have it considered capital for benefit purposes. The other option is put some of it into a private pension when she turns eighteen. Get her to top up regularly and that will mean that tbeere is money for NW and through her life. If possible avoid appointing the bank or solicitor as trustees as they will just see it as a cash cow as their fees could very quickly eat up the trust.
        Last edited by seduraed; 6th January 2017, 12:44:PM. Reason: Spelling

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        • #5
          Re: Large sum of money left to 15 year old daughter

          I agree with the set up a trust so that it avaiable on reaching the age of 24 - 25. Hopefully by that time she may be sensible about money. I would write into it something like to the age you select save for things like educational expenses.

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          • #6
            Re: Large sum of money left to 15 year old daughter

            I would also give thought to the possibility of using an independent financial adviser.
            https://www.moneyadviceservice.org.u...ancial-adviser
            CAVEAT LECTOR

            This is only my opinion - "
            Opinions are made to be changed --or how is truth to be got at?" (Byron)

            You and I do not see things as they are. We see things as we are.
            Cohen, Herb

            There is danger when a man throws his tongue into high gear before he
            gets his brain a-going.
            Phelps, C. C.

            "They couldn't hit an elephant at this distance!"
            The last words of John Sedgwick

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            • #7
              Re: Large sum of money left to 15 year old daughter

              Thanks for the replies I shall have to consider carefully.

              Comment


              • #8
                Re: Large sum of money left to 15 year old daughter

                Come to this a bit late as have been out, but I would go out on a limb and warn against tieing the money up in a trust until the age of 25.
                Perhaps there is an argument to retain control of the money until the YOUNG PERSON (not a child at 15) becomes an adult at 18.
                At 18 a person can vote, can die for their country, and is considered an adult.
                By then she should have been taught how to be sensible with money, and if she discovers you have put her legacy out of her control you might find it causing a rift.
                If she decides to use it to purchase a house, doubtlessly that will be applauded, but who is to say purchasing a car or travelling the world is an inferior choice.
                It will be her choice, and it will be right for her,

                As you might have guessed, I am anti control of others, no matter how well intentioned!

                Comment


                • #9
                  Re: Large sum of money left to 15 year old daughter

                  Originally posted by des8 View Post
                  Come to this a bit late as have been out, but I would go out on a limb and warn against tieing the money up in a trust until the age of 25.
                  Perhaps there is an argument to retain control of the money until the YOUNG PERSON (not a child at 15) becomes an adult at 18.
                  At 18 a person can vote, can die for their country, and is considered an adult.
                  By then she should have been taught how to be sensible with money, and if she discovers you have put her legacy out of her control you might find it causing a rift.
                  If she decides to use it to purchase a house, doubtlessly that will be applauded, but who is to say purchasing a car or travelling the world is an inferior choice.
                  It will be her choice, and it will be right for her,

                  As you might have guessed, I am anti control of others, no matter how well intentioned!
                  A person in England under 18 cannot directly inherit so "control" as you put it is not the issue.You seem to have got the wrong end of the stick I asked for advice on managing an inheritance until she can LEGALLY inherit I don't remember asking for parenting advice.

                  Comment


                  • #10
                    Re: Large sum of money left to 15 year old daughter

                    Point taken about the age at whch one can inherit, but if the will does not specify a later age, at 18 the money becomes hers, and my point was that if you try and put it out of reach till a later age (as suggested by others) you might find there are unexpected side effects.
                    In fact I do not believe legally any trustees can with hold the funds once the child has reached the age of 18, unless the will specifically states the funds are to be held in trust until a later date.
                    I'm sure your solicitors will clarify that point for you.

                    My post was not intended as parenting advice, I was just commenting on other posts andpresenting an alternative view.
                    I apologise if it gave unintentional offence.

                    Comment


                    • #11
                      Re: Large sum of money left to 15 year old daughter

                      Originally posted by des8 View Post
                      Point taken about the age at whch one can inherit, but if the will does not specify a later age, at 18 the money becomes hers, and my point was that if you try and put it out of reach till a later age (as suggested by others) you might find there are unexpected side effects.
                      In fact I do not believe legally any trustees can with hold the funds once the child has reached the age of 18, unless the will specifically states the funds are to be held in trust until a later date.
                      I'm sure your solicitors will clarify that point for you.

                      My post was not intended as parenting advice, I was just commenting on other posts andpresenting an alternative view.
                      I apologise if it gave unintentional offence.
                      Fwiw, des, I agree with you on this.
                      CAVEAT LECTOR

                      This is only my opinion - "
                      Opinions are made to be changed --or how is truth to be got at?" (Byron)

                      You and I do not see things as they are. We see things as we are.
                      Cohen, Herb

                      There is danger when a man throws his tongue into high gear before he
                      gets his brain a-going.
                      Phelps, C. C.

                      "They couldn't hit an elephant at this distance!"
                      The last words of John Sedgwick

                      Comment


                      • #12
                        Re: Large sum of money left to 15 year old daughter

                        Originally posted by des8 View Post
                        Point taken about the age at whch one can inherit, but if the will does not specify a later age, at 18 the money becomes hers, and my point was that if you try and put it out of reach till a later age (as suggested by others) you might find there are unexpected side effects.
                        In fact I do not believe legally any trustees can with hold the funds once the child has reached the age of 18, unless the will specifically states the funds are to be held in trust until a later date.
                        I'm sure your solicitors will clarify that point for you.

                        My post was not intended as parenting advice, I was just commenting on other posts andpresenting an alternative view.
                        I apologise if it gave unintentional offence.
                        Fair enough I am rather sensitive at the moment. I lost my dad unexpectedly a few months ago then my brother two weeks after dad.I was hoping 2017 would be a better year but now we have had more awful news.

                        Comment


                        • #13
                          Re: Large sum of money left to 15 year old daughter

                          A really tough time for you. With regard to your daughters inheritance it will very much depend on the wording of your father's Will. Any executors will effectively become the trustees of any funds held for children until they reach the age stipulated in the will to inherit their legacy, unless separate trustees have been appointed. Some wills enable the parent or legal guardian of the child to provide an indemnity and receive the funds on the child's behalf for holding until the age they are to inherit.
                          Either way the trustee or parent if applicable, has a duty to 'look after' the money and invest it appropriately. I would recommend seeking an independent financial advisers thoughts on the best options for investment, if you are given the legacy to hold for your daughter. The solicitors acting for the executors should be able to point you in the right direction.
                          You can't tie up any of the legacy once your daughter reaches 18, if the will doesn't stipulate a different age.
                          If you are to be responsible for the funds, either as trustee or parent having given an indemnity to the executors, then seek financial advice from someone independent as to the best vehicle to hold the funds in. The trustees can allow your daughter advances for her welfare, such as educational costs and provided the will does not prevent it, she can receive any interest earnt before she is entitled to the capital sum. Any income will have to be declared for tax purposes.
                          I hope this assists, definitely speak to the solicitors dealing with the estate.
                          I am a qualified solicitor employed by the LegalBeagles forum to provide guidance on a wide range of legal queries. I am happy to try and assist informally, where needed.

                          Any posts I make on LegalBeagles are for information and discussion purposes only and shouldn't be seen as legal advice. Any practical advice I give is without liability. I do not represent people on the forum.

                          If in doubt you should always seek professional face to face legal advice.

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