childs savings howdy69

#1
I am an executor for an 11 year old who has been left £200,000 plus £1000 per month (a pension fund until he is 18) I cannot find a bank/building society that will take this amount or the monthly pay in. If I put it in my name I assume I am liable for tax? The child trust funds have been replaced with junior ISA's which only allow £4000. Is there an account that the other executor and I can sign for until the child is an adult?

#2
Who is/are the child's Trustee (s)?



It would appear that the lump sum has been left to the child unconditionally/ is a death lump sum from a pension?



If so, this means that the child owns the money and is only prevented from taking control by virtue of his minority and the money needs to be held/invested in Bare Trust.



However, be sure that the nature of the Trust is clarified.



https://www.gov.uk/trusts-taxes/types-of-trust



https://www.taxinsider.co.uk/763-The_Bare_Essentials_Bare_Trusts.html





It might be as well for you/the child's Trustee (s) to take professional financial advice from an Independent Financial Adviser if the lump sum is to be invested, rather than held in cash deposits.



https://www.moneyadviceservice.org.uk/en/articles/choosing-a-financial-adviser



It is possible to hold an investment account in Bare Trust for a child.



https://www.hl.co.uk/free-guides/investing-for-children



It should be possible for the child's Trustee to open a bank account into which the £200,000 can initially be deposited and which can accept the £1000 a month.



The Trustee should consult his own bank and explain the situation or might try Barclays, HSBC or Metrobank.



https://www.caterallen.co.uk/solutions-for-trusts might offer a temporary resting place.



The child is likely to have a CTF - see here re transfer to JISA -



http://forums.moneysavingexpert.com/showthread.php?p=70479762#post70479762



The above could hold £8080 this year and then the Trustee can continue to move in a lump sum each year until the child turns 18.



Make sure that you/the trustee understands the taxation of income/gains from a Bare Trust or from whatever type of trust is involved

#3
Thank you, I am the executor of the will and the trustee for the child. The £1000 per month is from a pension. The £200,000 has been left to him by his mother after she died. I have opened an account in my name to "hold" his money but was worried it would mean I would be taxed personally ? I don't really want to invest the money, just keep it in trust until he is 18.

#5
The money belongs to the child beneficially so should not be held in your sole name.



The account needs to be in the name of Howdy 69 Trustee of (child's name).



Check that the money is "indefeasibly vested" in the child



http://www.prescient-financial.com/docs/Bare%20trust%20returns.pdf



If so, this is a bare trust - if it is any other kind of trust tax treatment is different - as a trustee, you need to know what you are doing - if you do not, check with a solicitor.



http://www.step.org/member-directory



You could consider a Trust Account with NS&I - the interest would not be great but the money is safe. You need to telephone to discuss.

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