Quizzes & Puzzles4 mins ago
Leaving Money To Grandchildren
I'm not leaving it for them to squander so want to ensure that most gets put into their pension schemes. Is it lawful to make it a condition that a bequest is to be paid by cheque to their pension provider?
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No best answer has yet been selected by Henry1865. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.In principal I believe such a bequest condition could be stipulated; it is quite normal for a Will to limit the availability of someone having access to the bequest until they are say 21.
But with such a generality as being paid into a ‘pension’ is fraught with potential issues; the person may not have a pension plan or may have a works pension – but there would be no issue with them opening another personal pension.
Bear in mind that currently someone can have access to their full pension pot at age 55 (soon to be 57) which could mean they can have all the money anyway by putting it in a pension and then immediately withdrawing it all.
If the sum of money you plan to bequest by this method is substantial, I’d advise you get professional advice on how to do it – there may be a better way of ensuring the money is not squandered (other than paid into a pension).
they cd have pension schemes now. The parents have to set them up.
https:/
is a good site for info. I have standard life stakeholders for my young heirs. and then you start contributing immediately.
Your plan is for one bliddy great payment on your death and is not tax efficient. Drip feeding is. for minors it is sset at £2880 per year ( as the article)
Plan A ( open stakeholder now)is fraught with problems. I have had four parents REFUSE - ( dont believe in them / dont need them). I waited until two reached age 18 so they cd do it themselves, and the boy threw a Kevin fit " oh it is so unfair, I said I had signed the form ( he hadnt) and sent it off ( he hadnt) so i dont see why...." The two refusers who never got around to it, have missed out on £78 000 in conts. slowly slowly catchee monkey
It mounts up.The clerk who set up the stakeholders said " do they have any idea what you are doing for them?" and I said 'no'