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Hi folks, I`d really value your inputs on this problem....
My mother died a couple of months ago, and I have a question about whether savings she made for my kids should be regarded as part of the estate, or separate.* Over the past 15+ years my mother invested the money she gave to her grandkids (my kids) for Xmas and birthdays in individually designated accounts (her name + kids initials) where according to the company website “shares can be registered in the name of an adult but designated for the child by adding, for example, their initials… Once the child reaches 18 the shares can be transferred into their name.* Designated accounts are not a legally binding arrangement.* If you are looking for a more formal status (and legal standing) to an investment on behalf of a child, you should choose to set up a bare trust.”* I have copies of share purchase documents which have “Birthday present from Granny” written on them in her hand.
My brother and I were joint Executors.* To simplify matters (or so I thought) I handed over my Executorship to my brother so he had sole control from then on.* He decided to manage the Probate process himself rather than employing a professional. At the time I felt the execution of the will would be simple, but in fact it is not, and in addition, my brother could be judged to have a clear conflict of interest, as per below.*
The will states that after the named beneficiaries (not my kids) are paid, the residual estate is divided equally between my brother and me.* The kids’ accounts are not mentioned.* My brothers position is that because the kids are not named beneficiaries in the will, their accounts will be either be liquidated, and added to the estate, which would then be divided equally between him and me (and I would then pay the kids from my half), or alternatively the accounts would be transferred into the kids names, and then my brother would get 50% of the value of the estate (including kids account money), and I would get 50% minus the value of the kids account money.* Either way, he would essentially be taking half of the money that our mother gifted to my kids.* If it was a small amount of money, I`d suck it up, but the total savings value is >50K.
Months before she died, mum told one of my kids that she wanted them to have the money immediately for a house deposit – unfortunately they responded that they didn’t need it then, so it was not taken forward.* Additionally my brother was discussing transferring the accounts into the kids names at the same time, in order to minimise IHT, although we then found we were below the limit and did not proceed.
Probate has now been granted but my brother has made no payments as yet.* Fortuitously, I have asked him not to make any payments until we agree on a price for our mother’s house (he is planning to buy me out, assuming I agree to sell my share).
Any advice on how I can legally proceed would be very welcome, thanks in advance.
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My mother died a couple of months ago, and I have a question about whether savings she made for my kids should be regarded as part of the estate, or separate.* Over the past 15+ years my mother invested the money she gave to her grandkids (my kids) for Xmas and birthdays in individually designated accounts (her name + kids initials) where according to the company website “shares can be registered in the name of an adult but designated for the child by adding, for example, their initials… Once the child reaches 18 the shares can be transferred into their name.* Designated accounts are not a legally binding arrangement.* If you are looking for a more formal status (and legal standing) to an investment on behalf of a child, you should choose to set up a bare trust.”* I have copies of share purchase documents which have “Birthday present from Granny” written on them in her hand.
My brother and I were joint Executors.* To simplify matters (or so I thought) I handed over my Executorship to my brother so he had sole control from then on.* He decided to manage the Probate process himself rather than employing a professional. At the time I felt the execution of the will would be simple, but in fact it is not, and in addition, my brother could be judged to have a clear conflict of interest, as per below.*
The will states that after the named beneficiaries (not my kids) are paid, the residual estate is divided equally between my brother and me.* The kids’ accounts are not mentioned.* My brothers position is that because the kids are not named beneficiaries in the will, their accounts will be either be liquidated, and added to the estate, which would then be divided equally between him and me (and I would then pay the kids from my half), or alternatively the accounts would be transferred into the kids names, and then my brother would get 50% of the value of the estate (including kids account money), and I would get 50% minus the value of the kids account money.* Either way, he would essentially be taking half of the money that our mother gifted to my kids.* If it was a small amount of money, I`d suck it up, but the total savings value is >50K.
Months before she died, mum told one of my kids that she wanted them to have the money immediately for a house deposit – unfortunately they responded that they didn’t need it then, so it was not taken forward.* Additionally my brother was discussing transferring the accounts into the kids names at the same time, in order to minimise IHT, although we then found we were below the limit and did not proceed.
Probate has now been granted but my brother has made no payments as yet.* Fortuitously, I have asked him not to make any payments until we agree on a price for our mother’s house (he is planning to buy me out, assuming I agree to sell my share).
Any advice on how I can legally proceed would be very welcome, thanks in advance.
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