Children’s / Grandchildren’s Trusts
If you do not make provision for your children’s financial future, then whilst the child is under the age of 18 years, their inheritance is held under a legal trust for their benefit. This is a complex and expensive legal procedure, as it involves an application to the courts to allow for the trust to be established. In addition to this expense, after the child reaches 18, they are quite free to spend (or worse squander) it.
Many people do not feel that this provision is suitable and therefore include this special and flexible trust in their professionally drafted Wills.
Through the Children’s Trust, the parents can place an age restriction on the inheritance of 21 or maybe 25 years of age. In addition, they would also nominate trustees. These are people they have total confidence in to manage the trust for their children until they become of age and thus eliminate any costly and complex court fees.
If you do not make provision for young children, the authorities will decide who is best placed to look after them, which may be hugely upsetting and disruptive.
These are also exceptionally flexible trusts. Should the trustees feel that it is suitable, they can advance funds to the children prior to the age of inheritance. For example, should a child need a life saving operation or require funds for university.
If you have disabled or handicapped children, you can also make further long term, secure financial provision for them.
Making sure that you have a Will is not enough; it has to be the right type of Will – one that is professionally drafted to take into account your wishes and your personal and financial circumstances.