Leaving specific annual amounts in a will?

[Chris_H]

I don't want to leave a lump sum to my son in my will. I'd rather leave him an annual amount until it runs out. Is there a way of doing this (or something similar) that can be set up via the will, and will need no one to administer it after my death?

[AndrewEH1]

How old is your son?

Perhaps a trust might be a suitable solution?

[FrankAbagnale]

I can't help with the answer to this, but did wonder whether he could then borrow the whole sum using the will as security.

[Chris_H]

AndrewEH1 said:

How old is your son?

Perhaps a trust might be a suitable solution?

He's 34, so not a child.

[bobclayton]

Trust work would be the answer there. And yes it is definitely doable!

[Chris_H]

bobclayton said:

Trust work would be the answer there. And yes it is definitely doable!

Thanks Bob. I received your PM and I'll talk with my FA. I was hoping for a quick answer on here as my FA has had a personal bereavement and I don't want to bother him yet.

[AndrewEH1]

Some reading here:
https://www.moneyadviceservice.org.uk/en/articles/...

Ignoring disability if it's not relevant in your situation some relevant info here:
www.enable-care.org.uk/media/77177/mencap-wills-in...

[Chris_H]

AndrewEH1 said:

Some reading here:
https://www.moneyadviceservice.org.uk/en/articles/...

Ignoring disability if it's not relevant in your situation some relevant info here:
www.enable-care.org.uk/media/77177/mencap-wills-in...

Thanks for that. I've had a quick look and it seems to be what I want. Many thanks again.

[big ant]

Aren't there quite significant tax implications on Trusts now ? If we assume for example £1m assets are transferred into a Trust, then I wonder what the running costs are for say 10-15 years before the death of the 'gifter' (not sure name !) and the beneficiary can start enjoying some or all ?

I had the impression Trusts that are old and established are fine, but new ones get clobbered by entry taxes and then annual or periodic taxes.

BA

[ukshooter]

big ant said:

Aren't there quite significant tax implications on Trusts now ? If we assume for example £1m assets are transferred into a Trust, then I wonder what the running costs are for say 10-15 years before the death of the 'gifter' (not sure name !) and the beneficiary can start enjoying some or all ?

I had the impression Trusts that are old and established are fine, but new ones get clobbered by entry taxes and then annual or periodic taxes.

BA

It depends on whether the trust is discretionary or absolute in the first instance and then whether the gift at outset exceeds the nil rate band. Lots of other considerations too but the original post was related to setting up the trust within the will (will trust)to gift a regular income so definitely a need to take professional advice from both the lawyer drawing up the will and the financial adviser.