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My mother has left money to her great-grandchildren in her Will. As the children are under 18 the Executors want to set up a trust, is this really necessary for a small legacy?
My mother's Will states: "I give free of tax the sum of five hundred pounds [£500] to each of my great-grandchildren as shall be alive at the date of my death". There are four children aged between 10 and 14 years. The Solicitor, who is one of two Executors, insists that he has to set up a trust for each of them and they cannot receive the money until they reach the age of 18. This is still dragging on for what is a comparatively small amount [each] of money and surely does not warrant setting up a trust, which is not mentioned in the Will?
As the law stands, a child cannot generally give a valid receipt for money etc until he or she is 18. It is usual that the Executors of the Will are also appointed its Trustees and therefore they have a duty to invest the money until the children reach 18 - the fact that the Will does not mention a trust is irrelevant since one is created naturally by virtue of the fact that the children are underage. The value of the legacy is irrelevant too, although sometimes a Will will mention that a child's parent can accept the money on their behalf instead and this does away with the need to set up a trust.
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