Will Trusts for Grandchildren
When making a Will it’s not always your children who inherit, sometimes clients come to us for advice on Trusts and how to leave their assets to the dearest, but not necessarily their nearest.
Obviously, you can leave your assets to whomever you want, but the advice of a specialist Will solicitor is preferable if you are going to need Trusts and Inheritance Tax advice.
Leaving a Will in Trust for Grandchildren
This is just what inventor Sir Clive Sinclair’s recent Will revelations show, he left his £2.6 million fortune to his grandchildren instead of his ex-wives and immediate children.
The inventor made a professional Will, kept it up to date and nominated his grandson as sole executor and trustee of his Will.
“No matter when you make a Will it is always advisable to make sure it is kept up to date with every changing family circumstance and this was exactly the case here,” said Lucy Roughley, Wills, Trusts and Probate Legal Adviser.
“When a client follows the proper recommendations, sets up a Will Trust and gets good advice it reduces the risks of that Will being challenged and a contentious probate case being issued against the estate. This is even more reason to have a Will drafted by a specialists who knows the correct procedure to follow and has contemporaneous notes of everything discussed,” added Lucy.
In Sinclair’s case he left a gross value of £2,625,215, and a net value of £1,749,445, to be split between his five grandchildren.
“A Will Trust makes sure your nominated beneficiaries are provided for, in terms that you would want, as well as protecting your beneficiaries from future Inheritance Tax,” Lucy said.
When does a Trust come into effect?
A Trust comes into effect on your death and will give your named trustee management and control over your assets on behalf of the beneficiaries, in line with your wishes. The beneficiary of a Trust can include family members, a class of people i.e. grandchildren and their descendants or also a nominated charity or friend.
“In a case like the Sinclair a Trust Fund was needed to be set up for each grandchild and the assets within are to be held by the Trustees until the children turn 21 years of age,” added Lucy.
“This is a common practice as most people do not want to entrust younger adults with significant amounts of money and therefore specify an age they think is appropriate.”
Making a Will
Making a Will is essential no matter what age you are and above all keeping, your Will up to date is crucial as family circumstances alter over the years.
Many people put off making their Will as it’s a sensitive area, but a bit of planning ahead is necessary for most people and advice on Trusts can help to protect your assets for your loved ones.
“People do not realise what happens if they die without a Will, their surviving partner will not necessarily inherit everything as an unmarried partner has no automatic entitlement. Grandchildren would also not benefit without a Will and in fact those that you do not want to benefit, may inherit. Making a Will ensures your wishes will be carried out, your estate passes to your intended inheritors and not those determined by strict intestacy laws,” added Lucy
“Worse still if you die ‘intestate’, that is without a Will, then your estate is distributed in accordance with the law and the State steps in.”
How can we help
A professionally drafted Will can also incorporate tax-efficient ways to leave your assets. By receiving good advice from your solicitor you can also minimise Inheritance Tax which is a very avoidable tax and Trusts also play an important part in this planning process.
For legal advice on Trusts or making a will contact our Will, Trusts and Probate Solicitors on 0161 785 3500, or firstname.lastname@example.orgSubscribe to our newsletter
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.