WillowLeaving a gift to a beneficiary under 18: how it actually works
Children and grandchildren are named in Wills all the time, and for good reason. What surprises a lot of people is that a beneficiary under 18 cannot actually receive their gift outright, however clearly your Will sets it out. The law does not consider a minor to have the legal capacity to accept an inheritance, so something has to hold that gift until they are old enough. Here is exactly how that works.
Why a minor cannot simply inherit
Anyone under 18 is treated in law as unable to give a valid legal receipt for money or property. That is not a judgement on any individual child. It is a blanket rule, and it applies however sensible or mature the beneficiary in question happens to be.
Because of this, a gift to a minor is automatically held on trust until they reach the age at which they can legally receive it, which is 18 unless your Will specifies an older age.
Who looks after the gift in the meantime
This is where Trustees come in. The people you name as Trustees in your Will are responsible for holding, managing and investing the gift on the child’s behalf until they reach the qualifying age. We cover this role in more depth in our guide to the role of a Trustee.
Trustees are not simply required to lock the money away and wait. Under the Trustee Act 1925, they generally have the power to use the funds for the child’s maintenance, education or general benefit before the vesting age is reached, for example to help with school costs or other needs, rather than leaving everything untouched until a birthday.
Choosing an age older than 18
Many people choose to set the age at which a child inherits outright somewhat later than 18, commonly 21 or 25, on the basis that an 18 year old with access to a significant sum of money is not always in the best position to manage it well. There is no single right answer here. It depends on the size of the gift and your own view of the beneficiary’s circumstances, and it is worth thinking through deliberately rather than defaulting to 18 without considering it.
Want to understand exactly what your named Trustees can and cannot do with the gift while they hold it? Our guide to the role of a Trustee covers their responsibilities in full.
Start my WillWhat a letter of wishes adds
A letter of wishes is not part of the legally binding Will, but it is where many people set out more detail than the Will itself needs to contain, for instance how they would like the funds used day to day, or any thoughts on schooling, welfare or the child’s upbringing more broadly. It gives your Trustees real guidance without needing to be updated every time your thinking shifts slightly, since changing a letter of wishes does not require re-signing or re-witnessing your Will.
Common questions about gifts to minors
Does this apply to grandchildren as well as children?
Yes. Any beneficiary under 18 at the relevant time is treated the same way, whatever their relationship to you.
What if the beneficiary is still under 18 when I die, but turns 18 shortly afterwards?
The trust simply continues to operate until they reach the age set out in your Will. There is no shortcut for being close to the qualifying age.
Can the Trustees pay money to a parent or guardian instead of holding it themselves?
This depends on what your Will allows. Some Wills include specific provisions letting Trustees pay funds to a parent or guardian for the child’s benefit, particularly for younger children, but this is not automatic and needs to be set out clearly.
Do I need to appoint different people as Trustees and as guardians for my children?
No, and in practice many people appoint the same people for both roles, since a guardian who already knows the child’s needs is often well placed to also act as Trustee for their inheritance.
Setting this up with Willow
When you write your Will with Willow, any gift to someone who might be under 18 is automatically structured to be held on trust, with, if you wish, an age older than 18 at which the gift is paid out in full.
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Gifts to anyone under 18 are automatically held on trust, with an age of your choosing for the gift to vest — from £49.99.
Start my WillThis guide sets out general information about gifts to minors in a Will for England and Wales. It is not legal advice, and the right vesting age depends on the size of the gift and your own circumstances.