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How do gifts for underage beneficiaries work?

Written by Sasha Best

Our Wills include a clause that any share of the estate or gifts left to underage beneficiaries, is to be held in trust by your executor until they reach the age of 18. Our Wills also include a provision that any inheritance you leave to your underage children can be used by their guardians for the children’s care and maintenance. The executor plays a crucial role in managing these inheritances. For instance, if a house is left to an underage beneficiary, the executor is responsible for managing the property until the beneficiary turns 18. Similarly, monetary gifts or other assets are held in trust and can be used for the child's care and maintenance if necessary.

Safewill wills include a built-in clause that ensures any inheritance left to underage beneficiaries is held in trust by the executor, eliminating the need for a separate trust arrangement. Common scenarios include managing a house or monetary gifts for the benefit of the child until they reach adulthood.

You can also leave instructions in the asset notes section on any further wishes you have in this respect, however, these notes are not legally binding and will only act as a guide for your executor to carry out.

Legal Implications and FAQs

  • Is it legally required to set up a trust for underage beneficiaries? No, Safewill wills already include a provision for underage beneficiaries, so no additional trust arrangement is necessary.

  • Can I choose a different trustee for underage beneficiaries? No, the executor of your will automatically acts as the trustee for any inheritance left to underage beneficiaries.

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