Will Trust - investment for minor beneficiary

Hi all,

I am dealing with an estate where a minor beneficiary is entitled to a share of the residuary estate (approximately £35,000) upon attaining 21. He is 19. The money needs to be invested and I would appreciate any suggestions members have for short term investments that would be suitable given that he will be entitled to the money in 2 years (or possibly less). Also, he is entitled to the income from the age of 18 so would that affect the type of investment the executors could make.

Many thanks

Sharon Edelstyn
Phoenix Legal Group

For that short period I’d suggest a fixed time NS&I product (saving certificate etc) or an 18/24 month investment bond.

Karl Taylor
Parker Rhodes Hickmotts

I suggest premium bonds

Simon Northcott

These recommendations seem very mealy mouthed and safe. Broadly they will give you 1% for 18 months – discuss for hours on the accuracy. From the markets (i.e. funds) expect 10% though of course some are better. This is based on basically one of the major Baillie Gifford Funds – American B , European etc.

There are investment professionals who would advise rather than a random selection of some people who connected to this forum. If I was allowed I would take money and ask for 25% of any profit over 3% per year and promise to pay 0.5% pa even if markets under perform that. Surely better than these recommendations and I would expect you to be getting 7-8% pa.

Larry Mccaffery

Hi

I would suggest National savings Certificates too

Ruksana Kaskar
Hamilton Davies LLP

Are Trustees allowed to hold Premium Bonds? I note that NS&I have very few products available at present in any event.

Sarah Bushell
Jobling Gowler Law Ltd

Lazza1973 - Yes, safe as you say. Admittedly I am no IFA but the time horizon is small so why risk an event like what has occurred this year? Yes there is a bounce now but it seems a lot of risk to for such a small amount of time. 5-10 years then something more risky perhaps. Trustees have a duty to protect as well as for growth.

Karl Taylor
Parker Rhodes Hickmotts

Premium Bonds. The administrative costs (including any time completing tax returns etc.) are disproportionally high. See this link for PBs

Vincent Oakley