A very interesting article. If a cash legacy is left in a will to minors (grandchildren), and no trust has been put in place, do the trustees named in the will automatically become trustees for the legacy until the minors become of age? Or perhaps do the executors have to set up trusts for them, and appoint different trustees?
Thank you
James – thanks so much for a great question. So, gifts to minors (under 18) automatically create what is called a ‘bare trust’ if the named beneficiaries are under 18 at the point at which the testator (the person that made the will) dies. And yes, either named trustees (or failing that the named executors) assume responsibility for holding that money until the children beneficiaries reach 18 (or an alternative older age if the will specifies that). So, the will wont say anything like ‘hold on trust’ but in behind that there is an implied ‘bare trust’. If you’ll forgive the slightly oversimplified analogy it is rather like a car not needing a badge on it saying ‘car’ cos it just is (if that helps explain it)? Thanks again for a great question James. We will post a little more on the subject you have raised – but meantime, have a look at this blog post which also touches on gifts to minors, and the bare trust. Best wishes from all at Team QLAW!
