grand childrens trust

[big-all]

as you may or may not be aware my father died december last year and i [3 oldest sons but mostly me lol ]need to start a trust for five off my nieces and nephews as per my fathers will

the children are to get the exact same amount when they reach 21 years old [1/5 1/4 1/3 1/2 remaining after costs interest and taxes]

the amount is approximately 50k

the probate tax office have already asked for the account details as my dad died in december

do we need to open a special type off account

is there a way off keeping the paperwork to a minimum as in go for a 1.9% interest rate pay tax at source and dish out as and when they reach the age off 21

or do we have to do tax returns every year

thanks for reading

and thanks for any help

 

[dave.m]

Sorry, BA but I cannot help you with the legal side of setting up a trust fund.

This from DirectGov may be of help:

http://www.direct.gov.uk/en/MoneyTa...und/SettingupaChildTrustFundaccount/DG_193682

http://www.direct.gov.uk/en/MoneyTa...oney/PlanningYourPersonalFinances/DG_10013916

dave

 

[chainsaw_masochist]

The probate office will need to see the account details presumably to ensure that there are no registered debts outstanding on your dad’s estate. That should be a quick rudimentary process (note the ‘should be’). I would be uncertain as to whether you could set up just one single account or whether each niece/nephew beneficiary should have an account created for them individually. It might be worth obtaining this Which? book here as it deals with setting up trusts etc. Good luck, in any case.

 

[big-all]

if you realise how time consuming it is to be an executor off someones will you will understand the frustration at the lack off help
it would have been half the effort to do it with a single executor as everything needs 3 signatures and moving money needs 2 signatures hence trying to keep the "trust" as simple as possible with minimum costs and minimum input

thanks for the link dave unfortunately as i am not a gaurdian i cannot open an account but i suspect its purely for the governments sceam
"Who can open an account

You can open an account if one of the following applies:

you are the person who was sent the voucher
you don't get Child Benefit for the child, but have 'parental responsibility' for them

Parental responsibility can apply to:

parents
step-parents
adoptive parents - but only when the adoption is finalised
guardians

This does not include:

grandparents or other relatives - unless they are the child's legal guardian
foster parents"

 

[big-all]

The probate office will need to see the account details presumably to ensure that there are no registered debts outstanding on your dad’s estate. That should be a quick rudimentary process (note the ‘should be’). I would be uncertain as to whether you could set up just one single account or whether each niece/nephew beneficiary should have an account created for them individually. It might be worth obtaining this Which? book here as it deals with setting up trusts etc. Good luck, in any case.

already been through probate cm you have to fill in a tax declaration stating all assets monetary and material assets
do not fill in form 400 if you are below inheritance tax levels[325k or 650k if last parent as married partners allowance carries]
forget the actual for but its 1 or 2 pages and take 10 mins to fill in
rather than the 6 hours we took trying to fill in the 400 form we where told to fill in on the help line rather than the correct form as the 400 links to a dozen other forms
you send the will tax form and a £100 fee to the probate office
they contact you to make an appointment you all attend with proof off who you are
they send the tax form off give you get a copy off the will and they keep the origional
the tax office then contact you about other assets like pension and interest paid to date off death
we got over £400 back from the tax he had paid last year on his pension and interest on his many bank accounts

missed you other point will is all sorted just waiting for the house sale to finalise to release the full assets the will is very precise lol sons share 2/3rds the full amount [16.666666% each]16 grand kids share 1/3 at 21 years old [2.0833333%]after all costs
£11k [5%]being held back for any problems not thought about or in case off dispute etc and will distribute that when everything has had a chance to crawl out the woodwork

 

[expertgasman]

Admin
Posted: Sat Aug 27, 2011 12:52 pm This message will expire on Mon Aug 29, 2011 12:52 pm Comment:

--------------------------------------------------------------------------------
Please note rule 1 (Abusive or unhelpful posts are not welcome.) - See here for the forum rules.
Offensive and related replies removed.

I can't remember who posted the removed post / comment, but it seems a bit harsh to call it abusive (IIRC)

 

[D_Hailsham]

my father died december last year and i [3 oldest sons but mostly me lol ]need to start a trust for five off my nieces and nephews as per my fathers will

Your father's will created the trust, with you (and your brothers?) as Trustees.

do we need to open a special type off account

That will depend on the terms of your father's will. If he has not given you carte blanche to invest the money in any way you see fit, you are limited to investing in "safe" products as you have a duty of care to your nephews and neices.

The trustees may have to pay tax on the interest at the trustees rate and may have to do tax returns, depending on the income.

It might be sensible to find an Independent Financial Adviser (IFA) and seek his advice. Most of them are paid commision by the Bank/ Buikdng Society or you can pay them a fee, usually based on an hourly rate, for thier advice.

 

[big-all]

my father died december last year and i [3 oldest sons but mostly me lol ]need to start a trust for five off my nieces and nephews as per my fathers will

Your father's will created the trust, with you (and your brothers?) as Trustees.

do we need to open a special type off account

That will depend on the terms of your father's will. If he has not given you carte blanche to invest the money in any way you see fit, you are limited to investing in "safe" products as you have a duty of care to your nephews and neices.

The trustees may have to pay tax on the interest at the trustees rate and may have to do tax returns, depending on the income.

It might be sensible to find an Independent Financial Adviser (IFA) and seek his advice. Most of them are paid commision by the Bank/ Buikdng Society or you can pay them a fee, usually based on an hourly rate, for thier advice.

thanks for your imput i do realise most off the requirements lol
the only reason for the trust is the 5 children living with the black sheep youngest brother to stop him getting access [via any devious means] all the other children can have there money now

my dads wishes are the minimum money legally possible to go to the sharks [lawyer solicitors admin fees tax man ect] not actually specified in the will but he let his thought be well know and specifys that we should act on his wishes whether written or verdal in a clause in the will
also any paper with his writing and signature on it to be included with and where it is newer than the will will overide the will

 

[Alarm]

Admin
Posted: Sat Aug 27, 2011 12:52 pm This message will expire on Mon Aug 29, 2011 12:52 pm Comment:

--------------------------------------------------------------------------------
Please note rule 1 (Abusive or unhelpful posts are not welcome.) - See here for the forum rules.
Offensive and related replies removed.

I can't remember who posted the removed post / comment, but it seems a bit harsh to call it abusive (IIRC)

It was the usual suspect.

It was abusive because it read the topic in the wrong context and made an assumption, as per usual.

 

[big-all]

Admin
Posted: Sat Aug 27, 2011 12:52 pm This message will expire on Mon Aug 29, 2011 12:52 pm Comment:

--------------------------------------------------------------------------------
Please note rule 1 (Abusive or unhelpful posts are not welcome.) - See here for the forum rules.
Offensive and related replies removed.

I can't remember who posted the removed post / comment, but it seems a bit harsh to call it abusive (IIRC)

It was the usual suspect.


It was abusive because it read the topic in the wrong context and made an assumption, as per usual.

as it happens his comments didn't bother me in least as he had obviously had misunderstood the post whether badly worded or not his first port off call should have been to ask for clarification off my thoughts
now i will forgive his comments without reservation as he obviously has other issues in his life detracting him from acting in a more sociable way

 

[Alarm]

Top man.

 

[matt1e]

Admin
Posted: Sat Aug 27, 2011 12:52 pm This message will expire on Mon Aug 29, 2011 12:52 pm Comment:

--------------------------------------------------------------------------------
Please note rule 1 (Abusive or unhelpful posts are not welcome.) - See here for the forum rules.
Offensive and related replies removed.

I can't remember who posted the removed post / comment, but it seems a bit harsh to call it abusive (IIRC)

It was the usual suspect.

It was abusive because it read the topic in the wrong context and made an assumption, as per usual.

and mine was the other post removed but it was just basically telling the said usual suspect the same as what Alarm has said above

 

[D_Hailsham]

the only reason for the trust is the 5 children living with the black sheep youngest brother to stop him getting access [via any devious means] all the other children can have there money now

Your father obviously knew what he was doing!

my dads wishes are the minimum money legally possible to go to the sharks [lawyer solicitors admin fees tax man ect] not actually specified in the will but he let his thought be well know and specifies that we should act on his wishes whether written or verbal in a clause in the will

Nobody wants to pay out more than is absolutely necessary for advice, but sometimes you just have to.

also any paper with his writing and signature on it to be included with and where it is newer than the Will will override the will

Sorry, but you can't do that. As far as the Probate Office is concerned the Will overrides everything. The only exception is if your father made a Codicil (amendment) to the will, which must have been properly draw up and witnessed.

 

[big-all]

the only reason for the trust is the 5 children living with the black sheep youngest brother to stop him getting access [via any devious means] all the other children can have there money now

Your father obviously knew what he was doing!

my dads wishes are the minimum money legally possible to go to the sharks [lawyer solicitors admin fees tax man ect] not actually specified in the will but he let his thought be well know and specifies that we should act on his wishes whether written or verbal in a clause in the will

Nobody wants to pay out more than is absolutely necessary for advice, but sometimes you just have to.

also any paper with his writing and signature on it to be included with and where it is newer than the Will will override the will

Sorry, but you can't do that. As far as the Probate Office is concerned the Will overrides everything. The only exception is if your father made a Codicil (amendment) to the will, which must have been properly draw up and witnessed.

there is only one codicil and that was kept by the solicitor in the safe beside the will
i should also mention it was drawn up and left in scotland with my dads solicitor even though he moved down here[surrey] the same year
yes i know you are going to say the law off the land applies where he resides and has property

thank you for help so far and every one i really appreciate it

ok another question if you don't mind lol

his total estate is below inheritance tax [285k] including all gifts in the last 7 years
we have paid all bills and debts outstanding so have discharged all debts
had a rebate from the tax man lol after filling in relivent form they sent

is it now safe to dish out the assets[cash] or have i we forgot anything

 

[D_Hailsham]

his total estate is below inheritance tax [285k] including all gifts in the last 7 years

The threshold has been 325k since April 2009; or are you saying your dad left 285k?

is it now safe to dish out the assets[cash] or have we forgotten anything?

If you mean the money which is not going into the trust for your nephews and nieces, I would have thought it was safe to dish it out.