A beneficiary is somebody who inherits under a person's Will (or, where the deceased did not leave a Will, under the rules of intestacy). A gift in a Will is only effective upon the testator's death; a will is ambulatory in nature, meaning that it may be changed or revoked (provided the testator has testamentary capacity) at any time during his or her lifetime. 

A common reason for making a Will is for parents to make provision for their minor children. Minors cannot own or hold property in their own name and this may cause practical problems for executors. Unless the Will states otherwise, a minor will be entitled to their inheritance at the age of 18. Most clients consider this to be a little too young; many preferring to raise the age to, say 21. 

Until the minor beneficiary reaches 18 (or the age stated in the Will), their money is held by Trustees. It is usually convenient to appoint the same people as executors and trustees, although if you prefer, you may appoint separate executors and trustees. The key thing to remember is that whenever there is a minor beneficiary, a minimum of 2 Trustees are required. 

 

During the child’s minority, the Trustees have power under statute to apply the trust income for the benefit of the minor and power to advance capital. These powers are provided under s31 and s32 Trustee Act 1925. The powers were widened by Inheritance and Trustees’ Powers Act 2014. Further, the testator may also leave a ‘letter of wishes’ offering guidance to the Trustees as to the circumstances in which they would wish money to be applied during the child’s minority. Such a letter is of course only a guide to the Trustees and is not legally binding upon them. 

 

Here at MG Legal, we would suggest that if you have children under the age of 18, you take time to consider who you would wish to appoint as Trustees in your Will. It may be that you would wish to appoint the same people that you have appointed as testamentary guardians for your children however, if so, you should bear in mind that although the guardian may be the person best placed to assess the needs of the child, if they are also appointed as trustee there can be a conflict of interest. We would suggest that if you wish to appoint a guardian as trustee, it is advisable to consider appointing at least one independent trustee to act alongside them. 

 

If you would like to discuss making or updating your Will, contact our team at your local office in Lancaster, Longridge or Garstang for the Preston area. We will be happy to discuss your matter with you and confirm our legal fees for assisting you.