Setting up and maintaining inheritance can be challenging. Managing family expectations or resolving issues within families is another challenge, in addition to navigating the legal intricacies, determining what you can and cannot do, and understanding your final tax bill. This blog looks at how to plan for your grandchildren’s inheritance.
Property and your Grandchildren’s Inheritance
You can include your grandchildren in your will and leave them the property if they are older than eighteen, but they are not yet legally permitted to own property if they are younger. However, there is a technique to get around this. Think about establishing a trust that you can include in your will. Consider at what age it would be suitable for your grandchildren to inherit the property. It should be an age at which they can use it wisely, but not too old that it is no longer as beneficial for them – for example, they may move away to university or seek work in a different city or country, making it difficult for them to manage it or make use of it themselves.
Assets left in a trust can be subject to an inheritance tax charge of up to 6% of the trust’s value every 10 years. This may be less important to you than ensuring the property goes to your grandchildren, but it is something that you will need to plan for so that they do not end up with a big tax bill as well. Putting together an effective estate plan can help to reduce that tax.
Financial and Valuable Items
You can directly include money or other assets in your will if you wish to leave them to your grandchildren. Make sure you appoint a reliable and unbiased executor – this could be someone outside the family whom you trust, or a professional such as your probate lawyer or a professional executor, who will carry out your wishes by circumventing those family members you are unsure of being able to do so. Depending on the age of your grandchildren, you may need to place items or money in trust.
Anything of sentimental value may be included in your will or a letter of wishes, or you could consider passing it down while you are still alive.
Contact UK Probate Reseals on 0208 1502010.
