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What if children named in a Will are too young to inherit?

When writing a Will, many parents or guardians consider leaving their estate to their children.

However, leaving an inheritance to minors comes with important legal considerations.

Children under 18 cannot legally inherit directly, which means careful planning is needed to ensure the inheritance is managed responsibly.

Legal age for inheriting

If you leave part of your estate directly to a child who is under 18, those assets must be held in trust until they reach adulthood.

Without appropriate provisions, this could lead to unintended complications and a delay in accessing the inheritance.

It is not uncommon for parents to prefer that their children receive their inheritance at an older age, perhaps 21 or 25, when they may be more financially mature.

Including specific age provisions in your Will allows you to dictate when and how the inheritance is distributed to your children.

This can give you greater control and peace of mind over their financial future.

Setting up a trust

As previously mentioned, assets left to minors need to be held in a trust, so you must include a trust in your Will.

A trust is a legal mechanism where assets are managed by a trustee on behalf of the beneficiaries (in this case, the children) until they reach a specified age.

The most common type of trust used for this purpose is a bare trust, where the assets are held in the child’s name, but managed by the trustee until the child reaches 18.

Alternatively, you can set up a discretionary trust, which offers more flexibility.

The trustee has greater discretion over when and how much of the inheritance is given to the child.

This type of trust can be especially beneficial if you have concerns about your child’s financial maturity or if there are specific circumstances that might make a more controlled approach advisable.

Choosing the right trustees

Trustees are responsible for managing the assets in the best interests of the children until they come of age.

This means they can make decisions about how to invest the funds, whether some of the money should be used for education or living expenses, and how best to preserve the value of the inheritance.

When selecting trustees, it is wise to choose individuals who are trustworthy, financially competent, and willing to act in the role for potentially many years.

Many people choose close family members or friends, but you can also appoint a professional trustee, such as a solicitor or accountant, who can provide impartial management of the assets.

How trustees can access funds

The funds held in trust are often required for the child’s welfare, particularly for education, healthcare, and general living expenses.

Trustees legally have the discretion to use part of the funds to support the child’s needs, as long as it is in the best interests of the child.

This can provide vital financial support to ensure the child’s well-being, without handing over full control of the inheritance until they are ready.

The role of guardians

If both parents pass away while the children are still minors, the role of the guardians named in the Will becomes important.

A guardian is responsible for the day-to-day care and upbringing of the children, while the trustee manages the financial aspects.

The guardians and trustees need to communicate effectively to ensure that the children’s needs are met.

Including a letter of wishes with your Will can provide additional guidance to both the guardians and trustees about how you would like the funds to be used.

Although this letter is not legally binding, it helps convey your intentions and ensures everyone involved understands your wishes for your children’s future.

Planning for a secure future

Proper planning in your Will means that even if the worst should happen, your children are provided for, with their inheritance managed in a way that supports their upbringing and education while protecting them from the challenges of managing large sums at a young age.

If you need assistance with writing your Will or want to understand the best way to leave an inheritance for your children, contact our team of solicitors for expert advice.

Rachel Blackburn

Head of Wills, Probate and Older Client Services

I joined Mander Hadley’s Wills, Probate and Older Client Services Team in 2018.I specialise in the preparation of Wills, Probate and estate administration, trusts and trust administration and Lasting Powers of Attorney. I also have experience of care fee planning and appeals of Continuing Health Care decisions.

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