How do I protect my young grandsons' inheritance?

System

This discussion was created from comments split from: Is inheritance tax affected by wills?.

5Goldfish

Hi. I have written a will and asked my younger Nieces to be in charge of what the will says upon my death.
My house and savings according to my will will be bequeathed to my two grandsons. This then gives me a tax free allowance of £500k before IHT.
The problem I have is one grandson is 16yrs and the other is 10yrs how do I protect their inheritance until, I assume, they reach 18yrs old ?

RAS

Have you actually said "house and savings"? If so what happens if the house is sold to pay for care home fees? It is better to leave "your estate" rather than specify the house.

Are you widowed or divorced? If the former, your IHT limit may be higher. But from the point of IHT, it does not matter if you still own the house when you die; you still get the residential allowance.

With respect to underage beneficiaries, the money is held in trust. Unless someone else is appointed, your executors would be the trustees.

Keep_pedalling

5Goldfish said:

Hi. I have written a will and asked my younger Nieces to be in charge of what the will says upon my death.
My house and savings according to my will will be bequeathed to my two grandsons. This then gives me a tax free allowance of £500k before IHT.
The problem I have is one grandson is 16yrs and the other is 10yrs how do I protect their inheritance until, I assume, they reach 18yrs old ?

Normally you would appoint trustees to look after inheritances for minors. Usually this would be the parents or guardians. Are you employing a solicitor to draw up your will?

Mojisola

5Goldfish said:

I have written a will and asked my younger Nieces to be in charge of what the will says upon my death.
My house and savings according to my will will be bequeathed to my two grandsons.

It can cost a non-professional executor time and money to sort out an estate - we have left a sum for the executors in recognition of this.

Linton

Mojisola said:

5Goldfish said:

I have written a will and asked my younger Nieces to be in charge of what the will says upon my death.
My house and savings according to my will will be bequeathed to my two grandsons.

It can cost a non-professional executor time and money to sort out an estate - we have left a sum for the executors in recognition of this.

Agreed. It seems somewhat mean/unfair to expect a family member to do what can be a stressful and time consuming job and get no reward.

Marcon

5Goldfish said:

Hi. I have written a will and asked my younger Nieces to be in charge of what the will says upon my death.
My house and savings according to my will will be bequeathed to my two grandsons. This then gives me a tax free allowance of £500k before IHT.
The problem I have is one grandson is 16yrs and the other is 10yrs how do I protect their inheritance until, I assume, they reach 18yrs old ?

Ask your solicitor to put the appropriate provisions in your will, naming a trusted adult (?one of the grandchildren's parents?) to be the trustee until they come of age.

5Goldfish

Keep_pedalling said:

5Goldfish said:

Hi. I have written a will and asked my younger Nieces to be in charge of what the will says upon my death.
My house and savings according to my will will be bequeathed to my two grandsons. This then gives me a tax free allowance of £500k before IHT.
The problem I have is one grandson is 16yrs and the other is 10yrs how do I protect their inheritance until, I assume, they reach 18yrs old ?

Normally you would appoint trustees to look after inheritances for minors. Usually this would be the parents or guardians. Are you employing a solicitor to draw up your will?

I have written my own will and appointed my nieces as trustees. 

5Goldfish

Marcon said:

5Goldfish said:

Hi. I have written a will and asked my younger Nieces to be in charge of what the will says upon my death.
My house and savings according to my will will be bequeathed to my two grandsons. This then gives me a tax free allowance of £500k before IHT.
The problem I have is one grandson is 16yrs and the other is 10yrs how do I protect their inheritance until, I assume, they reach 18yrs old ?

Ask your solicitor to put the appropriate provisions in your will, naming a trusted adult (?one of the grandchildren's parents?) to be the trustee until they come of age.

Thank you.

5Goldfish

RAS said:

Have you actually said "house and savings"? If so what happens if the house is sold to pay for care home fees? It is better to leave "your estate" rather than specify the house.

Are you widowed or divorced? If the former, your IHT limit may be higher. But from the point of IHT, it does not matter if you still own the house when you die; you still get the residential allowance.

With respect to underage beneficiaries, the money is held in trust. Unless someone else is appointed, your executors would be the trustees.

I have put estate in my will, and I am divorced. Thank you.

Linton

5Goldfish said:

Keep_pedalling said:

5Goldfish said:

Hi. I have written a will and asked my younger Nieces to be in charge of what the will says upon my death.
My house and savings according to my will will be bequeathed to my two grandsons. This then gives me a tax free allowance of £500k before IHT.
The problem I have is one grandson is 16yrs and the other is 10yrs how do I protect their inheritance until, I assume, they reach 18yrs old ?

Normally you would appoint trustees to look after inheritances for minors. Usually this would be the parents or guardians. Are you employing a solicitor to draw up your will?

I have written my own will and appointed my nieces as trustees. 

Then what is your concern?  It is the responsibility of the trustees to prortect the inheritance.

I suggest you get a solicitor to check your will in case there is anything there that perhaps may not give the result you wish.