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elisjohn
19 Oct 11 19:14
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Date Joined: 15 Jun 03
| Topic/replies: 18,216 | Blogger: elisjohn's blog
ive been left a tidy sum of money in a will, but in the will it said my brother had to keep the money and give it me as he sees fit, i had loads of loans etc as a youngster and ive wasted a lot of money over the years.im ok with this will,  but would love to leave the money for my kids when theyre 18, what im worried about is that if the money goes into a building society under my name, could people i had loans with find out and take the money , or is it best for my brother put the money in his building society under his name, but hes not sure if he can do this.
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Report Muqbil October 19, 2011 9:07 PM BST
Buy some physical gold, 1oz Krugerrands. Keep them in a safety deposit box (genuine, honest answer).
Report wykhamist2 October 20, 2011 12:08 PM BST
I have to agree. If you are holding Krugerrands (or you can buy QE2 gold sovereigns for about 270 quid each) and hide them away somewhere there is not much your creditors, government or anybody else can do to get their hands on them. When the time is right just pass them on to your kids and tell them to do the same. Historically this is how families kept their wealth and in some cases maybe managed to avoid inheritance tax at the same time.
Report elisjohn October 20, 2011 12:19 PM BST
havent a clue about gold etc, how do i buy them, could they be forgeries, if i say buy 20,000 worth now , in 6 years time will i be able to sell them for cash without losing out , sorry for been stupid on this but havent a clue, could they be worth more in 6 year.thanks i have around 20,000 to invest
Report elisjohn October 20, 2011 12:50 PM BST
just made enquiries krugerrands i can buy today at 1119 quid for 1 coin, does that sound fair ok
Report d13phe October 20, 2011 1:01 PM BST
sounds like it is a will trust and your brother is a trustee

the trustee has to register any investments in his name although there are a lot of responsibilities that come with being a trustee that you may want to read up on

trustee act 2000 is a good start
Report madasahatter October 23, 2011 12:30 PM BST
As you wish to pass the money on to your children when they are 18, then: - Why not do a 'deed of variation' on the existing will, with your children as beneficiaries.  This saves any hassle over any claims that may still be outstanding on you.  I would not recommend spending all the money on gold coinage and salting it away, there is no anonimity as purchases of the size you are suggesting are recorded, Unless, you use 'back street dealers' or eBay, where you risk being sold forgeries - of which there are plenty.

The original Will will be registered for probate, and as such will be a public document.  It is not an impossibility that your creditors have you 'on watch' in respect of windfalls similar to the one you have received.
Report elisjohn October 23, 2011 8:21 PM BST
cant see a problem, if my brother gives me the money and i open a building society acct and put it im my kids names  and him still in charge until their 18    , is there?
Report Banwana October 23, 2011 8:31 PM BST
Strange. The money is now your brothers as I see it.
Report elisjohn October 23, 2011 8:39 PM BST
brother is in charge, cannot give the money to me direct, but can agree to putting it for my kids if he feels thats ok, and can invest it for me if again he agrees, sorry banwana dont get your point
Report madasahatter October 23, 2011 9:21 PM BST
cant see a problem, if my brother gives me the money and i open a building society acct and put it im my kids names  and him still in charge until their 18    , is there?

The money will be treated as yours in the eyes of HMRC, so it will be taxed as so being.  The money would also be deemed to be yours in the eyes of any creditors.  As I stated earlier if you wish to skip a generation the easiest way of doing it is through a 'deed of variation' on the Will.  That way the money does not belong to you or your brother, neither can access it for personal gain.  You may however, be the trustees of the bequest, until such time as you detail in the 'deed of variation', 18 years of age?  By being a trustee you would be expected to invest the money wisely on your childrens behalf. I would suggest investigating drip feeding some of the money into junior ISA's (Starts November 1st 2011), the current limit is £3.6k per child per year indexed linked till 2013
Report elisjohn October 23, 2011 10:00 PM BST
madasahatter , how do i do this deed of variation, great advice thanks
Report madasahatter October 23, 2011 11:28 PM BST
how do i do this deed of variation,

You will need to do this through a Solicitor.  He/She will explain the legal aspects and given your desires and circumstances offer advice as to the suitability of such an instrument.  I would expect a charge of around £100+ Vat for the service.  In most cases you have a two year window from the date of death to make changes to the Will.  The only other thing to factor in is that all affected parties have to agree to the 'deed of variation'.

It is a straightforward process in England, Northern Ireland and Wales.  Scotland has its own laws in respect of testators, which is different from the rest of the UK.
Report d13phe October 24, 2011 1:16 PM BST
deed of variation needs to be effected within two years of the death of the person who has left money

Also all beneficiaries will need to be over 18 and agree to it
Report madasahatter October 24, 2011 1:32 PM BST
Also all beneficiaries will need to be over 18 and agree to it

Incorrect.

Only the person who would benefit under the original dispositions of the will or intestacy needs to sign the deed of variation and they can do so at any time in the two year period, even if the grant of probate has not been obtained. Contrary to popular belief there is no need for other beneficiaries of the will to sign even if part of the residuary estate is being varied and there is no need to wait until probate is proven..

also

A minor cannot be a donor party to a deed of variation, although obviously can benefit. However, provided the minor's interest under the will or intestacy is not affected a variation can go ahead. For example if a will creates a trust in which the remainder interest belongs to a minor there is no objection to any prior interest being the subject of the deed of variation.

All from here: -

http://www.ecadviser.com/xq/asp/txtSearch.Legacies/exactphrase.1/sid.0/articleid.90978013-5C4C-47E2-BDF0-0ACAFBC8F2C4/qx/display.htm
Report Rampant Rabbit October 26, 2011 11:08 PM BST
I got involved in a very complicated deed of variation plan with famous Accountants with 4 capital letters as name. When it finally came down to it , it was clearly going to be challenged ( there was a BPR business involved as well as property)_ and the thought of having to take the witness box and be took apart..,,, well frankly the saving wansnt worth it..

So I just ended up paying a load and I mean a load for the advice. Happy Days .
Report d13phe October 27, 2011 3:10 PM BST
madasahatter

I have not come across those two points before

thank you.
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