Unlocking the Legal Jargon: How AI Legalese Decoder Can Help You Navigate Your Children’s Inheritance
- December 25, 2023
- Posted by: legaleseblogger
- Category: Related News
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**The Estate Situation and Financial Planning for Teenage Children**
Since the passing of my grandmother in May, my father has been serving as the executor of her substantial estate. As part of his responsibilities, he has decided to make changes to the will, resulting in both of my teenage children (aged 17 and 13) receiving a generous sum of £30,000 each. This amount is intended to be placed in some form of trust, and I have been entrusted with the task of managing these funds.
Currently, both of my children have Child Trust Funds (CTFs) that were established when they were born, but these accounts have not received any contributions in recent years. While I understand that the maximum annual contribution to a CTF is £9,000, I am unsure about how to effectively utilize the remaining £21,000 for each child.
Furthermore, I am contemplating the possibility of converting the CTFs to Junior ISAs, as I have come across suggestions recommending this course of action. However, my understanding is limited in regards to the restrictions and allowances associated with Junior ISAs in comparison to CTFs.
In light of this situation, I am seeking guidance and insights on the best course of action. Any assistance or advice offered would be immensely valuable and appreciated.
**How AI Legalese Decoder Can Help**
AI Legalese Decoder can offer valuable support in navigating the complex legal and financial aspects of managing an estate and setting up trusts for underage beneficiaries. By utilizing this technology, I can gain a clearer understanding of the legal language and intricate details involved in estate administration and the establishment of financial trusts for my children.
Moreover, AI Legalese Decoder can provide insights and recommendations on the most suitable financial options available for managing the funds earmarked for my children, including the potential conversion of CTFs to Junior ISAs. With the assistance of this AI tool, I can make well-informed decisions and ensure that the financial interests of my children are safeguarded and maximized in accordance with legal regulations and best practices.
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Original Content:
“Many people struggle to understand legal documents because of the complex language used, also known as legalese. This language can be confusing and difficult to interpret, making it hard for individuals to understand their rights and obligations. AI Legalese Decoder is a software tool that can help simplify and translate legal jargon into plain language, making it easier for people to understand legal documents. This can be especially helpful for individuals who are not familiar with legal terminology and want to ensure they fully understand the terms and conditions of a document before signing it.”
Revised Content:
How AI Legalese Decoder Can Help:
AI Legalese Decoder: Simplifying Legal Jargon for Everyone
Legal documents are notorious for their difficult language, often referred to as legalese, which can pose a challenge for many individuals trying to understand their rights and obligations. The complex terminology and convoluted sentence structures in legal documents can be a barrier to comprehension for people without a legal background. This can lead to misunderstandings and potential legal issues down the line.
AI Legalese Decoder is a powerful software tool designed to address this issue by simplifying and translating legal jargon into plain language. By using advanced algorithms and natural language processing, AI Legalese Decoder is able to break down complex legal terms and phrases, making them easier to understand for a wider audience. The tool can help individuals decipher the contents of legal documents such as contracts, agreements, and policies, allowing them to fully comprehend the implications of the language used.
This software tool can be especially beneficial for individuals who are not well-versed in legal terminology or who may struggle with interpreting the contents of a legal document. By using AI Legalese Decoder, these individuals can gain a clearer understanding of their rights and obligations, enabling them to make informed decisions when dealing with legal matters. Additionally, AI Legalese Decoder can also help individuals identify any potential risks or concerns within a document, allowing them to seek clarification or legal advice before proceeding.
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****** just grabbed a
If you are planning to invest the money, a product like https://www.ajbell.co.uk/investing-for-children/dealing-accounts-for-children may be of interest. Unlike a JISA, the funds remain accessible before the child turns 18. It’s not tax advantaged, but with their grandparent as the settlor would use the children’s tax allowances so probably no/little tax to pay in any case.
When does the 17yr old turn 18? They’ll then have a ┬ú20k per year limit for their ISA next year, so the change can just go in a savings account (won’t earn enough interest to become taxable).
For the 13yr old, it’s a bit trickier. I don’t have experience of forming a formal “trust” but from other experienced users here I’ve seen it can be complex and costly, not sure the cost/benefit argument stands here. I might get shot here, but Premium Bonds in the child’s name might be an easy option before drip-feeding across into a JISA each year?
In both cases, the JISA could be cash or stocks and shares. If either of them have a long-term head on their shoulders they might be up for investing, but if they want to spend that money in early adulthood (learn to drive, go off to uni etc) then cash might be sensible, at the risk of losing some to inflation.
My daughter received money from her grandmotherÔÇÖs Will and my understanding was that this created a Bare Trust for her with me and my wife as Trustees as set out in the Will.
As such I set up a bare trust dealing account with AJ Bell to hold the funds.
The Will sets out that she is not to receive the funds until age 25, but I may use Trustee Act powers to transfer some to her once age 18 for her to immediately place into a Lifetime ISA.
Have to be careful not to put my own money into the Trust account as I believe that can change the tax situation, but provided I donÔÇÖt do that then the income and capital gains are chargeable to my daughter, which given she is an unemployed 4 year old means there is currently no tax payable.
Will need to be more careful of tax once she is older and avoid realising too many capital gains in one year (hence the LISA drip-feed plan).
Did their grandmother give instruction to put in a trust until a certain age? Or just that £30k each go to them?
Money that you give to your children gets a different tax treatment to money given to them by other people (or that they earn, I assume).
If you want to save money to your kids then IMO the first thing for most people to do is save it in your own ISA, then you can dole it out at your own discretion. For the poor and the wealthy a JISA can make a lot of sense – for the poor gives the money to the kids’ and protects it from benefits assessments, for the wealthy it’s an extra tax-advantaged wrapper when you’ve already used up your own ISA.
For money given by other people I would consider a bare trust, which has more flexibility than a JISA – I believe that monies from it can be used for the child’s benefit before they turn 18.
* https://www.bestinvest.co.uk/news/bare-trusts-for-children-tax-efficient-control-and-flexibility
* PDF: https://www.investcentre.co.uk/sites/default/files/AJBIC_Investing_for_children_adviser_guide.pdf
If you use a bare trust make sure to keep good records of where the money came from.
Hey, IÔÇÖm really sorry about your Nan, I hope your gramps is doing okay.
This is a slightly different answer – but depending on your 17 year oldÔÇÖs awareness, IÔÇÖd have a deep conversation with them about house prices and the necessity for a deposit and mortgage in a few years, not to mention the cost of rent post university if they want to move to London for a year or two. Explain how fÔÇÖd lots of others are and how keeping some aside will come in useful later.
Have some money for fun (maybe a travelling trip or end of school holiday) but be mindful, and also make sure they know not to advertise to *anyone* that they have savings or how much. How to be financially discreet. YouÔÇÖd be shocked at how many people will spend another personÔÇÖs money when they know you have it – and ÔÇ£you can get this round!ÔÇØ quickly tots up. They need to feel confident saying ÔÇ£ha, noÔÇØ and walking away. Also – how to build upon savings/investments where possible.
My partner inherited ┬ú75k at 18, and he had it in premium bonds and another account, both of which took a few days for him to pull any money out – this meant he couldnÔÇÖt spaff it all up the wall at uni and was able to buy our flat. Tbh, he was lazy and found it too much of an effort to even do the process to withdraw any. His older brother who is v financially astute didnÔÇÖt spend any, and the eldest who was 27 put it straight into a house purchase.
However, his sister who got hers at 25 spent it all within three years
I donÔÇÖt have any advice on where you should put this money, but As a now 25 year old who is struggling to save for a house in the current climate – donÔÇÖt give your soon to be 18 year old the money. Nor your 13yo when they turn 18. Wait until they are older and use for either house deposits, not getting into debt for uni or something along the lines. From a former 18 year old who inherited 25k at 18 and has nothing to show for it 🙂
Give them a small amount (whatever you think is reasonable) and then stick the rest into premium bonds and give them the choice to either reinvest winnings or get paid into bank account.
At the moment with ┬ú25k or so invested in premium bonds you should win something most months – which might reduce the temptation to spend the main amount frivolously.
Put it into premium bonds with NSandI until they are old enough to do something with it. Orrrrr, put it into a vanguard sp500 Vusa isa.
Premium bonds with any winnings being re-invested, give them a nice little pot for when they need it.
Premium bonds. Simple and easy to setup and easy to draw out when needed.
If nothing else, log into NSandI and set them up a premium bonds account. Pay the money in there.
IÔÇÖd stick it in NS&I. Sure it wonÔÇÖt be inflation beating but itÔÇÖll be safe
Jisa at. 9k now
The rest in a good savings account or premium bonds.
Move 9k over to the JISA in April, then 9k next April
I had some money left to me around that age (not that much) but it paid for all my driving lessons and test and buying a ford fiesta. It was great cause working the minimum wage job at 17 youÔÇÖre never going to pay for that yourself and the freedom changed my life living in a small town
Premium bonds?
Premium bonds!
IÔÇÖd get on to NS&I and put the lot in Premium Bonds for them.
I’m curious, how can your Dad vary the Will. He should be acting as per your grandparents wishes.
The executor is choosing to vary the will  all the beneficiaries need to agree together to vary the will I believe  is that happening  if not dont touch the money.
You should post on the uk legal advice sub and ask if he can even change the will.
I’d be very tempted to put it some (most) in a Vanguard target retirement fund. They might moan in their teens but hopefully this gift from Grandma can be that they can retire or go part time while they’re still young enough to enjoy themselves, and they’ll thank you in the long run.
Put in pensions for the children
Edit 2 I stand corrected changes and variations are permitted within set criteria as on the kinks provided below in the reply to my post thanks all.
Seek to find out the legality of your dad “changing the will” his role should be to execute as provided in the will others other people can contest etc etc… please be careful
Edit 1
I second the ISA and Jisa route loolz….
Do you think they will both go to Uni?
My two inherited similar when MIL passed away a few years ago. They were allowed to spend ┬ú1000 and the rest was put into premium bonds and any winning reinvested. They are now in AJ Bell investment accounts. Probably earning more interest than the PB winnings but possibly more risky (can set how risky you want to be I think. Husband helps them manage it now they are older and itÔÇÖs their money)
May be worth a talk with a Financial adviser. Probably a happy medium of long term investment vs easy access they can have a bit of fun with
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On a side note what are the benefits of a trust over putting money in an ISA? I always assumed it only benefitted the very rich and are expensive to set up and manage?
Is 9k per tax year, so you can put 8kbon in January and then another 9k in April, so that only leaves 12k, open a savings account or an ISA
Vary the will? How is that possible?
You could set up 2 accounts with NSandI Premium Bonds… Or one central account until they’re both old enough to own their own.
Their return isn’t exactly “guaranteed” at a certain percentage but it’s a safe haven and something that *could* net them a sizeable additional amount. My parents have done this for house deposits for both me and my brother – having it not be instantaneous to withdraw the money makes it so much less tempting if I ever want to buy something.
You can Convert the CTF to a self select jisa and either go down the all share tracker route or monevator has a slow and steady portfolio.
that is what I would do.
Obviously not advice
You could look at putting some into a Lisa but just be aware of the potential tax pitfalls if you want to withdraw for anything other than a house (under the limit) or retirement.