I want my grandchildren to inherit my estate when they turn 30. What should I do?
If you have particular friends or family members you would like to pass things to when you pass away, it is important that you make a Will.
Without a Will, when you pass away, you will be classed as ‘dying intestate’ and the rules of intestacy would dictate who inherits from your estate. Therefore, under these rules, your grandchildren would only inherit if their own parents had predeceased you.
It is possible to leave your estate in trust until grandchildren are aged 30, however it would be prudent to consider the ongoing legal and administrative charges, and potentially yearly charges and exit charges associated with an ongoing trust. There may also be inheritance tax complications depending on the size of the estate.
This is because as well as the standard ‘Nil Rate Band’ of £325,000 – which is not taxed, there is a residential nil rate band potentially available of £150,000 for the current tax year. This is available where a testator is leaving their property to direct lineal descendants such as grandchildren with no ongoing trust.
Therefore, by leaving the trust until age 30, the estate may not qualify for the residential nil rate band. However, if the entire estate is below the standard nil rate band, this shouldn’t be a concern.
If you have any question about Wills, trusts or estate planning, please contact Eilidh Jordan on 0114 290 6206 or email Eilidh at firstname.lastname@example.org.