Gifts to grandchildren: what to consider
Leaving gifts to grandchildren raises specific drafting questions: minor management, fairness across families, and substitute beneficiaries.
Gifts to grandchildren should address: minor beneficiary management (testamentary trust or held by parent), fairness across grandchildren (including future-born grandchildren), substitute beneficiaries, and integration with parents’ inheritance to avoid double-up or unintended consequences.
Minor management
Direct gifts to a minor can’t be managed by them. Options: held in trust by a nominated trustee until a defined age (18, 21, 25); paid to a parent’s discretion (with risks if parents disagree); or via a testamentary trust with structured distributions.
Fairness across grandchildren
Equal shares per grandchild treats each individual equally. Per stirpes (per branch) treats each parent’s branch equally regardless of how many grandchildren each has. Both approaches are common – the choice depends on family dynamics and what feels fair.
Future grandchildren
Grandchildren born after the will is signed need explicit inclusion (“my grandchildren, including those born after the date of this will”). Without this, only existing grandchildren may be included.
Substitute beneficiaries
What happens if a grandchild predeceases the testator? Usually the gift passes to the grandchild’s children (great-grandchildren) or back to the parent’s branch. Specify explicitly.
Coordinating with parents’ inheritance
A gift to grandchildren effectively reduces what their parents inherit. Some families intend this; others don’t. Coordinating across the will and the parents’ financial position is sensible.
Summary
Leaving gifts to grandchildren raises specific drafting questions: minor management, fairness across families, and substitute beneficiaries.
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Disclaimer: This article is general information only and does not constitute legal advice. Estate planning is deeply personal - every family's circumstances are different. For advice specific to your situation, please contact Rosewood Succession Solicitors.