Inheritance, trusts etc. Age and knowledge restrictions

[sleepwouldbenice]

Hello all
1st world problem I know but am trying to get the balance right.

My Dad is generously thinking of leaving some money to my kids directly in his will, say 100k to 150k each

He's in reasonable health but in his late 80s so obviously anything could happen time wise

My kids are in their late teens early 20s, youngest 17

My main concern is that if they got a big lump sum, or knew they were going to get one in the future, then they might become more frivolous, have lower career aspirations etc. It's lots of money!! Especially if this happened within the next year or so, given maturity....

I will obviously get legal advice. But in summary, can money be put in trust funds (either via a will or now) with them not knowing about it, until they 6, 30? Ideally, I could give them some money on his death, help out as needed until they were 30, then give them the rest when, fingers crossed, they are more mature, made key career decisions etc

Is this doable? I am seeing things about 18 to 25 trusts from parents only. Nothing older than that age wise or relationship wise

Thanks!!

My Mother left money in her will to 'each of my grandchildren as shall be living at my death and shall attain or have attained the age of 25 years'.

I think as Trustees my sister and I had discretion to let them have it sooner.

The trust will have to be created in the will. You cannot unilaterally put it in a trust for them as it's not your money to place in to trust.

It is possible to do this with a trust in the will, but it has to be written in to the will.

If the will were to say something like "I leave my estate equally to my grandchildren upon attaining the age of 30 years"

Then, yes, that would achieve your aim.

Your DCs would still be entitled to any income generated by the trust from the age of 18, but could only request release of any capital money before they reach the age of 30.

Thank you all. But would they be aware that the trust/ benefit existed?

This.

It is not your money, it is theirs. You cannot put money in trust that you do not legally or beneficially own.

My kids are in their late teens early 20s, youngest 17

What are your dc like with money now? You should have a pretty good idea at their age whether they blow any birthday money or like to buy expensive trainers or are they frugal and save and buy from Vinted.

My Dad would ask for the trust within his will

You need proper legal advice but my rudimentary remembrance of trust law (Saunders v Vautier) is that if all the beneficiaries are adults (18) with no disabilities then they can demand trust property be transferred to them. There must be ways around it as otherwise all those dukes who somehow avoid inheritance tax would just claim all the money, but I expect the terms of those trusts are wider in terms of beneficiaries than your father might wish.

If he/you want you to control the money, he should leave it to you to distribute as you see fit.

I don't see how you can prevent them knowing and would strongly advocate for being 'cards on the table' open about it; we were.

Bottom line is that wills, one proven, are publicly available.