Can a Minor Inherit UK (2026)? What Happens When a Child Inherits

Yes — a child under 18 can be a beneficiary in a will or inherit under intestacy rules in England and Wales. There is no minimum age for being named as a beneficiary or inheriting an estate. However, a minor (someone under 18) has a significant legal limitation: they cannot hold the legal title to land or property. Under Law of Property Act 1925 s.1(6), a minor cannot hold a legal estate in land. This means: (1) If a minor is left a house, a share of a house, or any other interest in land, the legal title cannot be transferred to them directly. An adult trustee (or trustees) must hold the legal title on the minor's behalf until the minor turns 18; (2) For other assets (money, investments, personal possessions, shares in a company) — a minor technically can 'own' these, but in practice someone must manage and hold them for the minor. A bare trust is usually set up with an adult as the trustee holding the assets for the minor as the beneficial owner; (3) A minor is the beneficial owner of everything held on trust for them — they have the right to the benefit; it is the legal title that must be held by an adult trustee; (4) On turning 18: the minor can demand the transfer of both legal and beneficial ownership to themselves. At 18, the trust terminates and the assets pass to them absolutely. If the trustee refuses to transfer, the beneficiary can enforce the transfer under the rule in Saunders v Vautier [1841]. The practical result: any gift to a minor requires a trust arrangement — whether explicit (in the will) or arising by operation of law (under the AEA 1925 for intestacy). A well-drafted will will make this trust explicit, name the trustees, set the vesting age, and give the trustees appropriate investment and management powers.

What happens when a minor inherits under a will depends on how the will is drafted: (1) Will with an express trust: a well-drafted will establishes an explicit trust for the minor beneficiary, specifying: (a) The age at which the minor receives the inheritance absolutely (the 'vesting age'). Under general trust law and WA 1837 s.33 substitution, the minimum vesting age is 18. The will can set a higher age — 21, 25, or any reasonable age. Higher ages provide more protection against an 18-year-old receiving a large sum prematurely. IHTA 1984 s.71D provides for a specific type of 'age 18-to-25 trust' with a modest IHT exit charge on distributions between ages 18 and 25; (b) Who the trustees are — typically the executors continue as trustees, or specific trustees are named. The testator should name at least two trustees; (c) The trustees' powers — investment powers (authorised by Trustee Act 2000); maintenance and advancement powers (TA 1925 ss.31-32; TA 2000 extended powers); power to apply income or capital for the minor's education, maintenance, and benefit before the vesting age; (2) Will with no express trust: if the will simply leaves assets to a named minor with no trust provisions, the personal representative (executor) holds the assets on a statutory trust under the AEA 1925 until the minor turns 18. The personal representative's powers to manage the trust are limited — TA 1925 s.31 income powers and s.32 advancement apply, but the investment powers are more restricted without the extended TA 2000 powers that an express will would grant; (3) Bereaved minors' trust (IHTA 1984 s.71A): where a minor inherits from a parent's estate and the trust directs that the minor receives the assets at 18, the trust may qualify as a bereaved minors' trust. This trust is completely free of IHT charges (no 10-year periodic charge; no exit charge) while the minor is under 18. The minor must be a child of the deceased, must receive the assets at exactly 18 (no later), and must be entitled to all income during the trust period.

When a person dies intestate (without a will) leaving minor children, the Administration of Estates Act 1925 provides a statutory framework for the minor's inheritance: (1) When a surviving parent exists: if one parent survives, the surviving parent inherits under the intestacy rules (depending on the estate value and structure). If the estate is large enough to give children a share under the statutory legacy rules, the children's share is held on a statutory trust by the personal representative until each child turns 18. The surviving parent often acts as administrator and holds the children's shares as trustee — which creates obvious conflicts of interest if the surviving parent is also a beneficiary; (2) When both parents die (orphan minors): if both parents die, the estate may pass entirely to the minor children. Personal representatives are appointed to administer the estate and hold the children's shares on statutory trust. The appointment of a guardian under CA 1989 s.5 (from the surviving parent's will, or from the court) does not automatically give the guardian financial authority over the estate. A separate appointment may be needed; (3) Statutory trust at 18: under the AEA 1925, a minor's interest under intestacy vests at 18 — this cannot be extended by intestacy rules (unlike a will, which can specify a later vesting age). This means an 18-year-old may receive a large sum that they are not emotionally or practically ready to manage, with no trustee discretion to delay; (4) The practical advantage of a will: this is one of the strongest arguments for making a will. A will allows you to set the vesting age (18, 21, or 25), give trustees meaningful discretion about timing and amounts, appoint named trustees you trust, and grant investment powers. Intestacy imposes the statutory minimum — vesting at 18, limited powers, the person administering the estate may be a conflict.

A bare trust is the simplest trust structure used to hold assets for a minor beneficiary: (1) Structure: in a bare trust, one or more trustees hold legal title to specific assets (money, shares, unit trusts, or other non-property assets) for the exclusive benefit of a named minor beneficiary. The beneficiary has an absolute, immediate, and unconditional beneficial interest in those assets — there is no discretion on the trustees' part; (2) Tax treatment: under HMRC's approach, assets in a bare trust are treated as belonging to the beneficiary for all tax purposes (income tax, capital gains tax, IHT). If the beneficiary is a minor child and the settlor is a parent, parental settlement rules apply — income exceeding £100 per year from parental gifts is taxed as the parent's income (not the child's) under ITTOIA 2005 s.629; (3) Termination: the bare trust ends when the beneficiary reaches 18 (or an earlier age if specified). The beneficiary can then demand the assets and the trustee must transfer them. Under Saunders v Vautier [1841], an adult beneficiary with an absolute interest can collapse the trust at any time; (4) Non-land assets: a bare trust is the standard arrangement for non-property assets gifted to minors — Junior ISAs (which the child controls at 18), investment accounts, and life insurance proceeds paid to a named minor beneficiary (written in trust); (5) Land assets: a bare trust CAN hold land for a minor — the trustee holds legal title and the minor holds the equitable/beneficial interest. However, the Trusts of Land and Appointment of Trustees Act 1996 (TLATA) governs the operation of the trust. The trustee manages the property (collecting rent; arranging maintenance; dealing with tenants) until the minor turns 18; (6) For inheritance: where a will or intestacy creates an entitlement for a minor to specific non-property assets (cash, shares), the personal representative holds them on a bare trust-like basis under the AEA 1925 until the minor turns 18.

Yes — a will can set a vesting age higher than 18 for a minor beneficiary's inheritance. This is one of the most important reasons to make a will rather than relying on intestacy: (1) Standard will provision: a will typically includes a trust for any share passing to a minor, with a vesting age specified. Common choices: 18 (statutory minimum, not always appropriate for large sums); 21 (modest extension; no tax consequence); 25 (maximum age for the special IHT-privileged age-25 trust under IHTA 1984 s.71D); (2) Age-25 trust (IHTA 1984 s.71D): the 'age 18-to-25 trust' allows the will to extend the vesting age to up to 25. While the minor is under 18, the trust is completely IHT-free (as a bereaved minor's trust under s.71A). Between ages 18 and 25, the trust is charged to IHT on distributions at a modest exit charge rate (maximum 4.2% of the fund value, calculated pro-rata); (3) Trusts over 25: a will can set a vesting age over 25 (30, for example). This is no longer an age-25 trust and loses the IHT privilege — it becomes a discretionary trust subject to 10-year periodic charges (max 6% every 10 years) and exit charges. For very large inheritances, the IHT cost of the periodic charges may be worth the protection; (4) Maintenance powers before vesting: between birth and the vesting age, the trustees can apply income and capital for the minor's maintenance, education, and benefit (TA 1925 s.31 and s.32, and extended powers in a well-drafted will). This means the money is not locked away — the trustees can fund school fees, university costs, or a property deposit — but within their discretion, not the minor's absolute control; (5) Practical point: the vesting age chosen in your will should reflect the maturity of your beneficiaries and the size of the anticipated inheritance. A sum of £5,000 at 18 is fine; a share of a £500,000 estate at 18 may not be.