Giving money to grandchildren

Bitstring , from the wonderful person snipped-for-privacy@invalid.invalid said

Read the thread 'giving money to children to avoid tax', which will explain how you can give £3k each PLUS any of your income which is surplus to requirements.

Not very simple/cheap, as far as I am aware. The complexity is which of them can access what part, when (some will presumably reach a sensible age before others .. do they get equal amounts out at different dates, or what). Before long you have a complex trust deed and a big legal bill.

4 separate pots is probably less likely to result in warfare. You can always invest in investment trusts or unit trusts, which achieve reasonable risk reduction on even £1500/year. Most IT companies run suitable savings schemes.

Following on from this thread, I am due to inherit some money myself together with the responsibility for holding inheritance(s) from the same source where my 2 children are beneficiaries, but they can only receive their inheritances when aged 25. The Will states that until age 25, the children's inheritances shall 'be held in trust' and can be used at my sole discretion for their benefit in any way fit, 'including for their education'. Whilst I perhaps should get some professional advice (from a lawyer or from a PFA?) do I really have to set up trusts or can I simply (at my discretion) use their inheritances e.g. to invest in property for their benefit which can then be sold if they want their cash (+ interest) when aged 25, or they may simply wish to hang on to the property themselves. If the Will says 'held in trust', does that actually mean I have to set up a trust fund, or can I just use the assets wisely for the kids' benefit (as it will in efeect be all done 'on trust')? Even if I chose to run off with their inheritance (I have no intention of this), apart from the kids, who could/would enforce compliance with the Will's instructions? Thanks for any advice.

snipped-for-privacy@from.is.invalid...

The general principle is that provided all the beneficiaries agree they have 2 years from the date of death to rewrite the will by a Deed of Variation to make it say whatever they like. Whether the junior beneficiaries are old enough to exercise that optionI don't know, but Google will no doubt tell you. The D of V is an excellent reason for making a will - any will - rather than dying intestate - often used to "skip" a generation and save IHT.

You will need a solicitor.

You can give a lot more than 3k per year with incurring an IHt liability: your do it by "regular gifts out of income". if (as you say) you are not spending all your income you can, for example, set up a standing order to pay the rest month by month to the grandchildren and it will not attract IHT. there is no limit to the amount you can transfer in this way, other than that it must use spare income (not sale of capital for example). If you die within 7 years, the executors will need to demonstrate that you were doing this out of income and that the payments formed part of a regular pattern, so make sure you keep simple accounts so this is easy to demonstrate.

Robert

There is no checking of the distribution of an estate. You may be sued though by any party who feels you short-changed them.

Give it some stunning photos to print.

Thank you for that suggestion, GSV, which I will investigate further.

However, AIUI, children under 18 cannot hold investment or unit trusts in their own name. I can designate such investments in the child's name, but I think I remain the owner, so I have not succeeded in giving it away for IHT purposes.

The alternative seems to be to set up a bare trust (or more likely, four of them), which, I suspect, starts to get expensive.