Trust/gift/inheritance

I'm sick. Many people have said that during social chat, but now my doctor's saying so too...

I want to give my children a large sum of money each, but I want my wife to look after it, manage and invest it, until such time as she sees fit to give it to them. I understand that any child of 18 or over could challenge this, but if they're smart enough to do that, they're probably ready to manage their own share of the money, so that's OK!

My death is already IHT-proof. The above arrangement will (I hope) mean that if my wife dies after me, she wont have to pay IHT on the estate she leaves to the children.

What do we have to do to make the arrangement 'real', such that the tax office cannot argue that my wife, not the children, actually owns everything that she has control of such that she is above the CGT limit? small part of what I want to give them is tied up in investments that we can't readily sell. Does this matter, or would it be simpler to forget that part? Thanks

You're a great & helpful group. Tony snipped-for-privacy@tonyjeffs.com

Reply to
tonyjeffs
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In message , snipped-for-privacy@aol.com writes

A trust could be created of which she is not a beneficiary (so does not obtain an interest in possession) but of which she is the trustee. The illiquid investments could be assigned to the trust. The trust could specify when the kids get it. An 'Accumulation & Maintenance' trust might do, they must get the dosh by age 25 BUT the trustees can make advances for their 'maintenance' at the trustees discretion.

(I assume that for CGT above you meant IHT?)

Reply to
john boyle

Yes sorry.

To create a trust, do we need a form from the inland revenue, or do we just draw up a simple contract and have someone witness my wife's signature?

thanks tony

Reply to
tonyjeffs

In message , snipped-for-privacy@aol.com writes

No, there is no such 'form' from anybody least of all from HMR&C.

No. A trust is not a contract. I never thought I would say this in this group but here goes - " go and see a solicitor', but not ANY solicitor because the vast majority of solicitors actual knowledge of trusts is minuscule when compared with their own assessment of that knowledge. Make sure they are members of 'TEP' (trust & estate practitioners) or can demonstrate some knowledge in this area.

Reply to
john boyle

Thanks John, I'll do that... reluctantly!

Tony

Reply to
tonyjeffs

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