Financial Provision for Minor Children in Your Will: A Practical Guide for Parents

In England and Wales, children under 18 cannot inherit money or assets directly — the law does not allow it. Without a trust or specific financial provision in your will, any inheritance left to a minor child will be held under a basic statutory trust until they turn 18, at which point they receive everything outright with no conditions attached. This guide explains your options for making proper financial provision in your will, and how to ensure any inheritance is protected until your child is ready for it.

In England and Wales, children under 18 cannot inherit assets outright. Without careful planning, a large sum could land in your child's hands at 18 with no safeguards in place — or be tied up in a structure you never intended.

This guide explains your options for financial provision in a will — including how to include provisions in your will — and how to make sure any inheritance is protected until your child is ready for it.

Can Children Inherit Money Directly?

In short: no — not outright.

In England and Wales:

• A child under 18 cannot legally hold or manage inherited assets
• Any money or property left to them must be held on their behalf
• Someone must be appointed to manage it until they reach adulthood

If your will does not specify how this should happen, the law applies a default structure.

What Happens If You Don't Make Specific Financial Provisions?

If you leave assets to a child without detailed instructions:

• A statutory trust is created automatically
• The child becomes entitled to the full inheritance at age 18
• Trustees manage the money until then

While this may be suitable in some cases, many parents feel that 18 is too young to receive a large sum of money outright. It's worth knowing that you can override this default in your will — choosing a different age or structure that better reflects your wishes.

Using Trustees to Manage Your Child's Inheritance

When providing for children in your will, you appoint trustees to look after the money.

Trustees are responsible for:

• Managing and investing the assets
• Using funds for the child's benefit (e.g. education, maintenance)
• Acting in the child's best interests at all times

You can choose family members, friends, or professionals — or a combination. It is common, but not required, for guardians and trustees to be the same people, ensuring joined-up decision-making.

If appointing a professional trustee — such as a solicitor or trust company — be aware that they charge ongoing fees for their services. For smaller estates, these costs can erode the inheritance significantly. Weigh the benefit of professional oversight against the size of your estate before deciding.

Your Options for Financial Provision

There are several ways to structure inheritance for children in a will in England and Wales, depending on your preferences.

1. Statutory Trust (Default Position)

This applies automatically if your will does not specify otherwise.

• Child receives full inheritance at age 18
• Trustees manage funds until then
• Funds can be used for maintenance and education

Best for: Simplicity, smaller estates, or where 18 is considered an appropriate age for access.

2. Bare Trust

A bare trust is expressly created in your will and gives your child an absolute, fixed entitlement to the assets.

• Trustees manage the funds until the child turns 18
• At 18, the child has the legal right to demand the assets in full — trustees cannot withhold them
• Trustees have limited discretion over how funds are used in the meantime

This is an important distinction from a discretionary trust: once your child reaches 18, the decision is theirs, not the trustees'.

Best for: Straightforward estates where you are comfortable with your child having full access at 18.

3. Discretionary Trust

A discretionary trust gives trustees the greatest degree of control and flexibility.

• Trustees decide how and when funds are distributed
• Access can be delayed beyond 18 — commonly to 21 or 25
• Funds can be protected from risks such as divorce, creditors, or financial immaturity
• Trustees can respond to changing circumstances rather than following a fixed schedule

Important: Discretionary trusts fall under the inheritance tax relevant property regime. This can include charges on 10-year anniversaries and when assets leave the trust. For larger estates, this is a material consideration — professional advice is strongly recommended before choosing this structure.

Best for: Larger estates, younger children, or where additional protection is needed.

Choosing the Right Structure

There is no one-size-fits-all solution. The right approach depends on:

• The size of your estate
• Your child's age and maturity
• Your concerns about financial responsibility
• Your family circumstances

Many parents choose to delay access to inheritance beyond age 18, giving children time to mature before receiving significant assets. If you are unsure which structure is right for you, professional legal advice is recommended — particularly for larger or more complex estates.

Writing Guidance for Trustees: A Letter of Wishes

Alongside your will, you can prepare a letter of wishes to guide your trustees on how you'd like funds to be used.

You might include:

• How funds should be used (e.g. school fees, university, housing deposit)
• Whether children should receive money in stages
• Any concerns about financial responsibility

A letter of wishes is not legally binding — trustees are not obliged to follow it, but they should take it into account when making decisions. Think of it as setting out your intentions clearly, so trustees can act in the spirit of your wishes even when circumstances change.

Common Mistakes to Avoid

When planning financial provision for children in a will, parents often:

• Assume children can inherit directly
• Fail to appoint suitable trustees
• Leave large sums accessible at 18 without considering whether that's appropriate
• Do not review their will as circumstances change

Avoiding these pitfalls can make a significant difference to your child's financial future.

When Should You Review Your Will?

Your will should reflect your current circumstances. Review it after:

• The birth or adoption of a child
• Changes in financial circumstances
• Changes to your chosen trustees
• Marriage or divorce

Read about appointing a guardian in your will.

See how to make a will online and protect your children.

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Wills & Power is an online will writing service UK that helps parents protect their children. Make a will online — London parents can include financial provision for children in minutes.

Choose a trusted online will service UK — Wills & Power ensures your children are protected.

Parents can make a will online — London residents included. Wills & Power lets you include financial provisions for your children as part of your will.