Under 18's beneficiary of will

patchwork_cat

Apologies if this in the wrong place. Am I correct in believing that if a grandparent leaves money to an under 18 this has to be held in trust for them until they reach 18? If so can anyone tell me who is entitled to be trustee for the children?

pandora205

I'm not sure about the legalities but 18 is often the age people choose. It doesn't have to be 18 though.

If it is a sizeable sum, the grandparent may wish to think about the implications of young people having large amounts. I've put a clause in my will that should my children inherit it would be at 25 (as it would be a considerable sum and I don't want them blowing it at 18!). In my case my ex would be executor (trustee), as being their he would have their best interests at heart.

My three (then 13, 15 and 18) each inherited a small sum from their grandmother last year, which they had straight away. It went into their savings accounts though not for long.

One of my son's friends inherited a large amount from his father a few years ago. Since this time the lad has spent quite a bit on computers, clothes and recently taxis for himself and friends.

mummytofour

Just to add that for tax credit purposes children are only allowed 3k before it effects the parents tax credits entitlement.

patchwork_cat

this money would be in trust, so 3k not relevant, but i am surprised to read this. have you got any links to this, i would be very interested to read about this mummyto4. I have googled this and can find absolutely no reference to it.