3 year old inherits. Now what?

[iano086]

My three year old will inherit a few 10's of thousands of euros from his grandmother. I'd like to invest in in the family business on his behalf, paying a decent return and sheltering it in a safe enough bet. Is this permissible or are there rules about how I should act in relation to his inheritance?

 

[j26]

Personally I think it's morally dubious, and in my own will I've explicitly prohibited the trustees who would hold on behalf of my children from doing anything like that.

The legality, I'm not so sure about.

 

[Jim2007]

Well what ever about the morals of the thing, it certainly fails to meet the criteria for a prudent investment by the trustee on behalf of child.

 

[Brendan Burgess]

Hi ian

A family business might well look safe. But over the 18 year period of the investment it would be quite risky. Anything could happen. It could also be difficult to get the money out. How would you invest it? Buy shares? Lend it to the company?

Not a good idea.

Just buy a small portfolio of shares and watch them grow over the years.

Brendan

 

[PMU]

It would be prudent to ask the executor exactly what the will says, e.g. does it bequeath the inheritance to the grandchold for his/her own use and benefit absolutely; or are you set up as a trustee of the inheritance and if so under what terms, etc. or does the executor become a trustee of the inheritance, etc. You really need to check this out first.