Expert answers wills and probate question

A concerned person has written to a financial expert to ask their opinion on a wills and probate matter.

The individual told Thisismoney.co.uk that their father's will left £60,000 to their two grandchildren in trust. The reader enquired about the best way to get a tax-efficient return from this.

Linda McKay, a member of the website's Ask An Expert section, said that the current economic climate means that people in this situation should seek advice on what to do with windfalls to make sure that their cash is well-looked after.

Danny Cox, of Hargreaves Lansdown, told the news source that one tax-efficient way of saving money is to use an Isa, but that the ages of savers could potentially rule this out.

He pointed out that the reader's grandchildren will be eligible for a cash Isa if they are at least 16 and can open a stocks and shares Isa if they are aged 18 or over. Alternatively, those with a child trust fund can add as much as £1,200 to it each year without paying tax.

In addition, the Telegraph said that people can avoid inheritance tax by paying their grandchildren's school fees in a one-off payment now.

Published by Hannah Carr