Awkward beneficiaries!

[crazyswede]

So the latest is that one of the beneficiaries who we actually found and address for, *has said they will be returning their cheque to the executors. The cheque includes not only their own inheritance, but also that of their children (who are under 18).*

Is the decision of the parent final? - i.e. does the portion of the cheque which belongs to the children also go into the pot to be shared amongst the residuary beneficiaries (as well as that as the parents portion of the cheque, who has refused their own share), or do the executors have to hold the childrens' money until they become of age.*

I am tempted to think that since the parent can, as is usual, accept the monies on behalf of their children and that decision is final, if they reject is, then that decision is also presumably final?

[des8]

Not sure that your assumption regarding the childrens' inheritance is correct.

The parents signature of acceptance on behalf of the children is enough to discharge your fiduciary duty to the children.
If the parents refuse to sign, the gift to the children remains and you still have a duty to the children.
I don't see that the parents refusal to accept on behalf of the children can be seen as a refusal to accept by the children.

As the amount is so small anyway why not tuck it away into a child savings account.

[crazyswede]

Not sure that your assumption regarding the childrens' inheritance is correct.

The parents signature of acceptance on behalf of the children is enough to discharge your fiduciary duty to the children.
If the parents refuse to sign, the gift to the children remains and you still have a duty to the children.
I don't see that the parents refusal to accept on behalf of the children can be seen as a refusal to accept by the children.

As the amount is so small anyway why not tuck it away into a child savings account.

Thanks for your advice, as always.

Strange isn’t it, that the parents could have accepted on behalf of the children, but they can’t refuse on behalf of the children.

I will put their portion aside. What about interest? Since those that had the legal authority to accept the monies but chose not to, does that mean that the Executors will either have to leave an additional amount in the bank for interest, or the residual beneficiary has to make good on any interest which will accrue for the next ten plus years?

Incidentally , the monies are currently held in an account named....” the executors of xxxx”, and it does not accrue interest. Can the executors simply open an account in a child’s name without any identification for that child. If we could, of course then the account would accrue it’s own interest.

i have pm’d you with the exact wording of the reply given in writing by the parent

[ostell]

Pick a children's saving account as they usually have a better than normal rate of interest.

[des8]

When you put the children's gifts aside you should set up a trust, (unless the will already does this) but in view of the cost it would be ridiculous for such small amounts!
And that will be as difficult as opening a child's saving account without proof of child's identity as you point out.

I would just put it to one side, preferably in an interest bearing account, so when they are old enough it can be given to them.

Does the will not give the executor the power to do what they think fit if any legacy fails?

[crazyswede]

When you put the children's gifts aside you should set up a trust, (unless the will already does this) but in view of the cost it would be ridiculous for such small amounts!
And that will be as difficult as opening a child's saving account without proof of child's identity as you point out.

I would just put it to one side, preferably in an interest bearing account, so when they are old enough it can be given to them.

Does the will not give the executor the power to do what they think fit if any legacy fails?

There is not a specific clause which seems to fit the bill in the case of a beneficiary refusing the gift on behalf of their children. The will only provides instructions for what should happen if the residuary beneficiaries predecease the donor ( the residual estate then passes to another family member, and if that fails, the residual estate passes to a charity).

[des8]

Is their a clause in the will making the executor also a trustee?

[crazyswede]

Is their a clause in the will making the executor also a trustee?

I am no expert in legal jargon, but I reckon “ yes”. It names the executors and then says ...“(my trustees), to be the executors and trustees of my Will...”

[des8]

So you and your co executor are trustees.
I assume there is no specific trust deed so you will have fairly broad powers.
Basically you have to act in the best interest of the beneficiary and not make a personal gain, and you won't get paid!
Just open a separate savings account in trustees joint names for the benefit of the minors.

or have an expensive chat with a solicitor!

[crazyswede]

So you and your co executor are trustees.
I assume there is no specific trust deed so you will have fairly broad powers.
Basically you have to act in the best interest of the beneficiary and not make a personal gain, and you won't get paid!
Just open a separate savings account in trustees joint names for the benefit of the minors.

or have an expensive chat with a solicitor!

Thanks for the advice, I will make an appointment with the bank to open such an account