Do you have children under the age of 18? Are you considering naming them as beneficiaries in your will?

While it is entirely possible to include minors in your estate planning, the process is not always as straightforward as it might seem.

Although you can list children as beneficiaries, they are not legally able to inherit assets directly.

However, this does not mean they will not eventually receive their inheritance. Instead, an adult of your choosing will need to manage these assets, which are typically held in a trust, until your children reach adulthood.

For parents or grandparents wishing to leave part of their estate to younger family members, careful planning is essential to ensure everything is handled smoothly.

Why can my children not inherit directly?

Under the law in England and Wales, children cannot directly access their inheritance until they turn 18.

This rule exists because minors are generally not considered ready to handle significant financial responsibility, especially if the inheritance involves large sums of money or property.

Some parents even feel that 18 is still too young for such responsibility. If you share this concern, you can specify a higher age – such as 25 – before your children gain full access to their inheritance.

Without proper provisions in your will, your estate could face unnecessary delays, confusion, or legal complications.

Setting up a trust for your children’s inheritance

A trust is one of the most effective ways to ensure your children’s inheritance is managed appropriately until they reach the designated age.

It is a legal arrangement where assets are held and managed by trustees on behalf of beneficiaries – in this case, your children. The two most commonly used trusts are:

• Bare trusts – Assets are held in the child’s name but managed by trustees until they turn 18. This is a straightforward and commonly used option.
• Discretionary trusts – Trustees have greater flexibility to decide when and how funds are distributed, based on your child’s needs and circumstances. This option is particularly useful if you have concerns about financial maturity or if family dynamics require more control over the inheritance.

There are several types of trusts available, each with its own advantages and requirements. To identify the most suitable option for your specific circumstances, consult our legal team.

Who should you choose as a trustee?

Trustees play a key role in managing your children’s inheritance. They are responsible for investing funds, making financial decisions, and ensuring assets are used in the best interests of your children.

It is worth noting that funds held in trust are not necessarily locked away until your child turns 18 (or the specified age).

Trustees often have the discretion to use funds for expenses such as education, healthcare, or day-to-day living costs.

When selecting trustees, consider the following qualities:

• Trustworthiness and integrity
• Financial competence
• Willingness to act over a potentially long period
• Their relationship with your child

You might choose a close family member, such as the other parent (if they are still involved), an aunt, an uncle, or even an older child over the age of 18.

However, if you opt for a family member or friend, ensure they fully understand their responsibilities and your expectations to avoid potential misunderstandings or disputes.

Alternatively, you may prefer to appoint a professional trustee, such as a solicitor or accountant, to ensure impartial and experienced management.

Ensuring long-term security for your children

Planning your children’s inheritance is an important part of securing their future.

Whether you need assistance setting up a trust or you would like to appoint one of our solicitors as a trustee, we are here to support you.

Our experienced wills and probate solicitors are based across Sutton Coldfield, Lichfield and Cannock.

Get in touch with Ansons Solicitors today to ensure your children receive their inheritance according to your wishes.