Meaning of "Absolutely" in a Will

HappyScotsman

How should "absolutely" be read in a will? e.g. "I give the sum of ten thousand pounds (£10,000) to my sister Doris Stern absolutely". For the sake of argument, assume the estate value is greater than £10k.

xylophone

An absolute gift passes into the ownership of the recipient  without condition or contingency  and is his to do with as he wishes.

HappyScotsman

How would that work if the gift were to a child under 16? e.g. "I give the sum of ten thousand pounds (£10,000) to my grandchild Tanya Stern absolutely" and Tanya is 11? She's too young to hold a bank account in her own right. Would the mechanics broadly be that the executors/trustees pass £10k to Tanya's parents/guardians who then invest it in trust for her until she is of age to access the funds? 

Marcon

HappyScotsman said:

How would that work if the gift were to a child under 16? e.g. "I give the sum of ten thousand pounds (£10,000) to my grandchild Tanya Stern absolutely" and Tanya is 11? She's too young to hold a bank account in her own right. Would the mechanics broadly be that the executors/trustees pass £10k to Tanya's parents/guardians who then invest it in trust for her until she is of age to access the funds? 

Using the word 'absolutely' simplify signifies that the beneficiary inherits in their own right and does not hold the gift as trustee for some other beneficiary. You are correct, though, about what happens where minors are concerned: they are not deemed old enough to give 'good receipt' for an inheritance.

AT 11 Tanya is quite old enough to have a bank account in her own right - see https://www.which.co.uk/money/banking/bank-accounts/best-childrens-bank-accounts-arspc9p7mk0y

HappyScotsman

Ah, ok, so Tanya can't inherit directly as a minor, so the estate has to pass the gift to her parents/guardians because they can sign to say the gift has been received. And from a probate perspective, that's the end of their oversight of the gift. 

When the estate passes the gift to her parents, is it done in good faith that it will reach Tanya, or does the estate pass the gift to a legal trust with parents as trustees?

Sorry, I find all this very interesting and each question sparks four more.

I'm guessing the executors are there to fulfil the wishes of the deceased as stated in the will, not to make moral judgements on parenting skills so have to work on a degree of good faith.

Marcon

HappyScotsman said:

Ah, ok, so Tanya can't inherit directly as a minor, so the estate has to pass the gift to her parents/guardians because they can sign to say the gift has been received. And from a probate perspective, that's the end of their oversight of the gift. 

When the estate passes the gift to her parents, is it done in good faith that it will reach Tanya, or does the estate pass the gift to a legal trust with parents as trustees?

Not a yes/no answer! Depends what the will says. 

xylophone

A minor cannot give good receipt for a bequest from  a will.

Where an absolute and unconditional gift is made to a minor, the cash or assets belong beneficially to the minor.

If Great Uncle Jim leaves £ 10,000 "to my great niece  Mary Ann Brown absolutely" in general the executor of the will would accept receipt from Mary Ann's parents.

If Mary Ann were say fifteen years old, the parents might choose to credit the money straight to her bank account.

Or they might choose to credit  partly it to her JISA and partly to her own bank account.

Or they might choose to open an account in bare trust for her until she reached the age of 18 (16 in Scotland).

If the will said "to my great niece Mary Ann Brown absolutely, to be held in trust until she reaches the age of majority" then the parents could give receipt but would need to hold in in bare trust for the child.

Or the will might make an absolute gift but direct that it be held in trust by the executor or by named Trustees - it would then be the named Trustees who would give receipt and open an account in bare trust for the beneficiary.

HappyScotsman

Ok, I think see the distinction.
So if Great Uncle Jim leaves £10,000 "to my great niece Mary Ann Brown absolutely" does that £10,000 have to be cash or could it be a proportion of Great Uncle Jim's house? 

getmore4less

HappyScotsman said:

Ah, ok, so Tanya can't inherit directly as a minor, so the estate has to pass the gift to her parents/guardians because they can sign to say the gift has been received. And from a probate perspective, that's the end of their oversight of the gift. 

When the estate passes the gift to her parents, is it done in good faith that it will reach Tanya, or does the estate pass the gift to a legal trust with parents as trustees?

Sorry, I find all this very interesting and each question sparks four more.

I'm guessing the executors are there to fulfil the wishes of the deceased as stated in the will, not to make moral judgements on parenting skills so have to work on a degree of good faith.

They amount to the same thing the trust already exists as.that is created by the will with a legacy to the minor.

The default trustee of the legacy to a minor is the executor(s) what happens next is down to will and trust law., 

Marcon

HappyScotsman said:

Ok, I think see the distinction.
So if Great Uncle Jim leaves £10,000 "to my great niece Mary Ann Brown absolutely" does that £10,000 have to be cash or could it be a proportion of Great Uncle Jim's house? 

If it's a cash bequest, it comes in cash. Again, how the will is worded is where you need to start.