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Grandparent Wills
Sanjiv talks to us about Grandparent Wills.
How Does a Grandparent Will Work?
Legally, there is no such thing as a grandparent Will. It is a term used for any standard Will that includes provision for grandchildren.
One of the main functions of any Will is to specify who should receive your assets after your death – and that can include your grandchildren.
If you are a grandparent, you can draw up a Will that stipulates certain items, including money or personal assets go straight to your grandchildren after you die and skipping a generation
When you become a grandparent, you may want to revise your current Will so that you can pass something on to the new arrival.
You may also have concerns about how your children will handle their inheritance. In that case, leaving particular items or sums of money to your grandchildren will ensure they stay within the family.
Assets You Can Pass on in a Grandparent Will
The range of assets you can pass directly to your grandchildren is broad. You can grant a sum of money, other financial properties, real estate, and valuable items like jewellery or family heirlooms.
You can also set up a Trust to support your grandchildren and say precisely how the money in it should be used.
Perhaps you want to contribute towards their education, or help them to buy their first property when they are old enough.
If your grandchildren are under 18 when you make your Will, it might be wise to set up a Trust for the purpose of managing the assets until they grow up.
It is also worth remembering that you can use your annual gift allowance to pass on a total of £3,000 every year while you are still alive. That is the total you can distribute, not per grandchild.
While you may want to give your grandchild a pleasant surprise by leaving them something in your Will, it may reduce the risk of family disputes if you let everybody know exactly what they can expect to receive when you pass on.
Impact of IHT
The amount of Inheritance Tax (IHT) your descendants and beneficiaries will have to pay depends on your personal circumstances.
They will be able to apply the basic nil rate band of £325,000 before being liable for IHT – and maybe more. One of our expert consultants can advise you how much you can pass on to your grandchildren and other beneficiaries before they have to pay tax.
Grandchildren do not have an automatic right to inherit, unless they are named in the Will. The only exception arises if the grandchild’s parents have died already, in which case their share may pass to the grandchild.
Your Next Step
If you want to know more about grandparent Wills, our helpful and knowledgeable team at Will Power will be happy to advise you.
We can discuss your requirements and advise you on the best course of action to take if you want to leave a legacy to your grandchildren. Please contact us today to set up a no-obligation appointment.
