Grandparent Wills

What is a Grandparent Will and how do they work?

A Grandparent Will is not a specific legal term – it’s essentially a standard Will that includes provisions for grandchildren. It allows grandparents to designate specific assets, money or personal items to be passed down to their grandchildren after their death. 

These Wills work by specifying the beneficiaries i.e. the grandchildren, the assets they are to receive and any conditions or trusts that might need to be set up. A trust can help manage inheritance, addressing age restrictions or stating that the funds are only to be used for certain purposes, such as education.

When should you look at a Will if you are a Grandparent?

You should consider drafting or revising a Will with specific provisions for your grandchildren after the birth of a grandchild. That will ensure they are included in your estate plan. You might also plan for future generations, to leave a legacy for your grandchildren. 

If your children – the grandchildren’s parents – are financially secure, you might want to skip a generation and leave assets directed to your grandchildren. 

There’s also the option to manage specific family dynamics, if there are concerns about how your children might handle the inheritance, or if you want to make sure your grandchildren receive something specific.

Can I leave my grandchildren money in my Will?

Yes, you can leave money and other assets to your grandchildren in your Will. You can specify the amount and the conditions under which they receive the inheritance. For example, you might want them to reach a certain age before inheriting, or for the assets to be used for specific purposes like education.

What can be inherited from grandparents?

Money, as cash or financial assets; property; real estate or other valuable items like jewellery, antiques or heirlooms; trusts. 

Grandparents can set up a trust for grandchildren, specifying how and when the funds can be used. Any personal belongings, such as items of sentimental value or family heirlooms can also be inherited.

How much can a grandchild inherit from a grandparent?

A grandchild can inherit any amount specified in the Will. There are no legal limits on how much a grandparent can leave to a grandchild, but the tax implications may need to be considered.

How does inheritance work with grandparents? How much can a grandchild inherit tax free in the UK?

In the UK inheritance tax is applied if the total value of the estate exceeds the nil rate band, which is currently £325,000 (as of August 2024). Anything above this amount may be taxed at 40%. Grandchildren can inherit money tax-free up to this limit if the entire estate is under the nil rate band. 

Beyond that, inheritance tax may apply, unless exemptions or reliefs are available – like the residence nil rate band, which is an additional allowance of £175,000. 

Additionally, there is the £3,000 annual gift allowance, allowing grandparents to give away this amount each year without it being added to the value of the estate for tax purposes. £3,000 is the total amount, though, not per grandchild.

Do grandchildren have a claim on a grandparent’s estate?

No, grandchildren don’t have an automatic right to inherit unless they are specifically named in the Will. There is an exception if the grandparent dies intestate, which means without a Will. If the grandparent’s children – the grandchild’s parents – have already passed away, the grandchild may inherit their parent’s share.

Can I contest my grandparent’s Will?

You can contest a Will, but it is challenging. Grounds for contesting a Will include lack of testamentary capacity, which argues that the grandparent was not of sound mind, or under undue influence – which suggests that someone improperly influenced the grandparent via fraud or forgery,

You could also claim if the Will was not genuinely created by the grandparent or they failed to meet legal formalities – for example, if the Will wasn’t properly signed or witnessed.

How much does a Will cost?

The cost of creating a Will can vary depending on complexity and the legal assistance required. A basic Will starts at £150 plus VAT. 

A more complex Will starts at £500 plus VAT,, particularly if it involves setting up trusts or has detailed provisions. 

Beware of online DIY Wills. These may be cheaper, but will not cover complex situations or all the areas that you may want your Will to cover.

How do I get a Will? What’s the process?

Contact our offices and we will arrange a meeting with one of our consultants, where your instructions will be taken. We will then draft the Will, including those provisions for your grandchildren. A draft will be sent for you to review before the final Will is sent for signing and witnessing.

Once you’re happy, we will provide instructions so that the Will is correctly signed and witnessed. After that, we can store the Will safely for you.

What else do we need to know about Wills when it comes to grandparents and their grandchildren?

If the grandchildren are currently minors, it might be wise to set up a trust to manage the inheritance until they reach adulthood. 

Wills should be regularly reviewed, especially after significant life events like births, deaths or change in financial circumstances. And, while not legally required, discussing your plans with your children and grandchildren can help avoid surprises and potential disputes after your passing.