When drafting a Will, it is very common to leave gifts to children or even to children who haven’t yet been thought of. What should you consider in making that gift?
- At what age do you wish the child to receive their gift? Often age 18, 21 or 25 is chosen but any age can be selected.
- What about future planning? If making a gift to your own children, what will happen if sadly any of them are no longer alive at the date of your death? Would you want their share to be divided between your other children or do you wish for their gift to pass to any children they may have in the future, (i.e. your grandchildren)?
- Do you want the child to receive money directly? Some people prefer to make provision for minors by way of a trust, which can be established within a Will or by a separate trust instrument. The trustees of the trust have a duty to protect the money and make sure it is properly managed for the benefit of the beneficiaries. This can also be helpful in circumstances where a child may have a disability or may otherwise not be in a position to manage the gift.
- What powers do you want to give the trustees of your Will to deal with the child’s gift before they reach the age when they can receive it? For example, can the parents of any minor recipient receive the gift on their behalf before they reach the age set out in the Will? Can the trustees distribute monies early, perhaps for education purposes or a deposit on a property?
It is important to get your Will right and ensure it will do what you want it to as far as possible. DQ has prepared a Will Questionnaire that we ask all clients to complete and which provides an opportunity to consider all aspects of your estate and together we can consider your particular circumstances and how your wishes can be achieved.
If you would like further information on this subject please contact any member of our private client team.
The information and/or opinions contained in this article is necessarily brief and general in nature and does not constitute legal or taxation advice. Appropriate legal or other professional advice should be sought for any specific matter. Any reliance on such information and/or opinions is therefore solely at the user’s own risk and DQ Advocates Limited (and its associates and subsidiaries) is not responsible for, and does not accept any responsibility or liability in connection with any action taken or reliance placed upon such content.