Paying minors

Blue102

Hi. I'm the sole executor for my mum's will and will shortly be applying for probate.

In her will, which is very simple and allocated in a proportional share basis, split into 4 with one quarter allocated to grandchildren, she has named the 2 grandchildren but since the will was made, a third grandchild has arrived, but she never amended her will as he only arrived recently.

I have 2 questions:
As a family, we obviously want to ensure the newest grandchild is included. Can I reallocate the quarter so that it covers the three grandchildren? can we do this within the family as applying for a deed of variation will be tricky as these are under 18.

As the grandchildren are under 18, when administering the estate, do I have to pay their allocation into a trust? Or can I pay their parents?

Thanks in advance.

Mojisola

Blue102 wrote: »

In her will, which is very simple and allocated in a proportional share basis, split into 4 with one quarter allocated to grandchildren, she has named the 2 grandchildren but since the will was made, a third grandchild has arrived, but she never amended her will as he only arrived recently.

I have 2 questions:
As a family, we obviously want to ensure the newest grandchild is included. Can I reallocate the quarter so that it covers the three grandchildren? can we do this within the family as applying for a deed of variation will be tricky as these are under 18.

No, you cannot alter the amount gifted to a minor. Minors can't agree to a deed of variation.

The adult beneficiaries can make a DOV to reduce the amount received and give that to the third grandchild.

As the grandchildren are under 18, when administering the estate, do I have to pay their allocation into a trust? Or can I pay their parents?

It's usually okay to pay the money to the parents who need to put it into an account that won't pay out until the child reaches 18.

theoretica

Worth thinking about what you might do as a family if more grandchildren come later on.

getmore4less

You don't need a DOV for the adults to give a bit of theirs away unless there is a tax benefit for the beneficiaries giving up some of their share

gifts work just as well.

Mojisola

getmore4less wrote: »

You don't need a DOV for the adults to give a bit of theirs away unless there is a tax benefit for the beneficiaries giving up some of their share

gifts work just as well.

All (or some) of the adults could agree to accept their inheritance and then gift part of it to the new grandchild so that she/he receives the same as the others. The executor then pays out according to the will.

If not done as gifts from the beneficiares then it should be on paper to protect the executor. If a beneficiary verbally agreed and then changed their mind, the executor would have to pay up from their own money so that the beneficiary received the total amount left to her/him in the will.

Blue102

Thank you all - v helpful, much appreciated.

Yorkshireman99

Blue102 wrote: »

Hi. I'm the sole executor for my mum's will and will shortly be applying for probate.

In her will, which is very simple and allocated in a proportional share basis, split into 4 with one quarter allocated to grandchildren, she has named the 2 grandchildren but since the will was made, a third grandchild has arrived, but she never amended her will as he only arrived recently.

I have 2 questions:
As a family, we obviously want to ensure the newest grandchild is included. Can I reallocate the quarter so that it covers the three grandchildren? can we do this within the family as applying for a deed of variation will be tricky as these are under 18.

As the grandchildren are under 18, when administering the estate, do I have to pay their allocation into a trust? Or can I pay their parents?

Thanks in advance.

I am afraid the new grandchild gets nothing if not named as in this case. Any legacy to a minor has to be held in trust. To redistribute it would be a breach of that trust. Initially the executor is the trustee but the can be changed subsequently. I suggest you consult a STEP qualified solicitor rather than rely on the advice from here.

TBagpuss

what is the wording of the will?

Savvy_Sue

TBagpuss wrote: »

what is the wording of the will?

I agree that this is a key question. You'd hope a half-decently drawn up will would cover the possibility of additional grandchildren arriving in this situation, but ...

unforeseen

Savvy_Sue wrote: »

I agree that this is a key question. You'd hope a half-decently drawn up will would cover the possibility of additional grandchildren arriving in this situation, but ...

Or the testator decided to draw the line at the grandchildren that existed at will writing time for a reason. Who knows what they were thinking