Elderly grandparent want to put house in trust for grandchildren

earthlover

My elderly mother has left her estate to her grandchildren in her will. She is worried that if she dies soon one of her grandchildren although in their 20's would not use the money wisely and so she would like to put the money into a trust to safeguard it. Is this expensive to do and are there any disadvantages to doing this?

Errata

The grandchild may still not use the money wisely in their 30's, 40's or 50's. It clearly needs a lot of thought before a new will is made

earthlover

She doesn't want to make a new will. She wants to use a trust to impose restrictions.

Errata

In that case perhaps it would be sensible for her to seek good legal advice to ascertain whether a trust deed will override the will.

borkid

This made me smile and think about a neighbour of mine. She was in her late 60s and went out and bought a new sports car with the money she had inherited from her dad. The reason being when she was younger he wouldn't let her do anything fun! In all other ways she is very very sensible. people do unwise things whatever their age as someone has already mentioned.

zzzLazyDaisy

She needs to seek legal advice.

Normally the trust would be contained in the will - the executors would also be appointed as trustees and the will would state that the beneficiary would inherit the money upon attaining the age of [whatever].

Essentially what you are asking is how do you amend/change a will without having to make a new will. That is potentially fraught with difficulties and you need legal advice to ensure it is done properly. To be honest it might be just as easy and cost effective to go back to the solicitor who drew up the original will and have a new will made which accurately records her wishes.

missile

I don't really understand why one would by pass offspring to leave a bequest to their kids if one doesn't trust them to use the money in the fashion one would wish?

Dunroamin

missile wrote: »

I don't really understand why one would by pass offspring to leave a bequest to their kids if one doesn't trust them to use the money in the fashion one would wish?

Probably a dodge to get round either inheritance tax or the benefits system.;)

zzzLazyDaisy

Or maybe because the parents are well established financially and the children are just setting out in life. However, in the context of OP's question, the reason for doing this isn't relevant, is it?

missile

Just making an observation.

The OP may not wish to discuss her circumstances and my applogies if she considers my comment to be inappropriate. :beer:

chesky

Has she thought about the sad feeling the one grandchild singled out for the action will have? Why doesn't she consider a trust for all of them - after all, she doesn't really know how they'll all spend the money, does she?