At what age should younger beneficiaries receive their inheritance?

Until a person attains the age of 18 years, any inheritance must usually be held on trust for them. This is because beneficiaries under 18 years of age are not legally able to give the Executor a valid receipt for assets distributed to them. When assets are held on trust for a beneficiary, pursuant to the terms set out in a Will, that is a type of “testamentary trust”.

It is possible to defer the age at which a beneficiary will be entitled to receive their inheritance in your Will, if you consider the age of 18 years to be too young to control a significant amount of money or assets of significant value. Many people select the age of 25 years, in the hope that by that age, the beneficiary will have gained further financial skills and maturity.

If assets are to be held on trust for a beneficiary for a period of time, then it is important that appropriate powers are given to the trustee in the Will, to manage those assets and to benefit the beneficiary if needed, before they attain the selected age and receive their inheritance.

We can assist you in choosing the appropriate age at which a beneficiary will receive their inheritance and the powers to be given to the trustee of the inheritance to manage the assets until they can be given to the beneficiary.

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Disclaimer: This post contains information of a general nature only and is not intended to be used as advice in relation to a specific matter. Although every care has been taken in preparing the document, it may not be accurate or complete, particularly in the context of specific circumstances. MJM Lawyers disclaims responsibility for any errors or omissions.