Navigating the Milestone: What Happens When a Child Turns 18?
By Bleu Wildman.
Turning 18 is a significant milestone. It marks the point at which a child legally becomes an adult, and with that comes a number of changes when it comes to Wills, inheritance and legal responsibilities.
For parents, it is worth knowing how this change in status can affect your children – particularly if you are making or reviewing your Will.
There are four key areas to consider: inheritance, executorship, Lasting Powers of Attorney and guardianship.
- Receiving Their Inheritance
If your Will leaves money or assets to your children without any age restrictions, they will generally become absolutely entitled to their inheritance when they reach 18.
While an 18-year-old is legally an adult, you may feel that they are not yet ready to manage a significant inheritance.
If you would prefer your children to receive their inheritance at a later age, your Will can include a trust which allows the inheritance to be held and managed until they reach a specified age, such as 21 or 25.
This can give you greater control over when and how your children receive their inheritance, while still allowing trustees to use funds for their benefit where appropriate.
- Taking on the Role of Executor
An executor is responsible for dealing with your estate after your death. This can include registering your death, arranging your funeral, dealing with Inheritance Tax and other liabilities, applying for the Grant of Probate, collecting in assets and distributing the estate in accordance with your Will.
A minor can be named as an executor in a Will, but they cannot take on the role until they reach the age of 18. It is therefore worth reviewing your choice of executors as your children grow up and considering whether an adult child would be comfortable taking on the responsibility.
- Making Decisions as Your Attorney
A Lasting Power of Attorney (LPA) allows you to appoint people you trust to make decisions on your behalf if you are unable to do so yourself. An LPA is separate from your Will and deals with decisions during your lifetime, rather than what happens to your estate after your death.
There are two types of LPA: one covering property and financial affairs, and another covering health and welfare.
An attorney must be at least 18 years old. This means that once your child reaches 18, they can potentially be appointed as an attorney for you.
Many parents choose to appoint their adult children, either individually or alongside another trusted person. It is important to think carefully about who you would feel comfortable making decisions on your behalf and whether your chosen attorneys understand what the role involves.
- Your Eldest Child Can Become a Guardian to Their Younger Siblings
Another important change when your eldest child reaches 18 is that they can potentially be appointed as a guardian for their younger brothers or sisters in your Will.
If you have younger children, your Will can include an appointment of a guardian to look after them if you were to pass away while they were still under 18. The person you choose does not have to be a family member, but they should be someone you trust to care for your children and make decisions about their upbringing.
Becoming a guardian can involve significant emotional, practical and financial responsibilities, particularly where there is a substantial age gap between siblings.
It is also important to discuss your wishes with anyone you are considering appointing as a guardian before naming them in your Will. Circumstances can change over time, so your choice of guardian should be reviewed regularly.
Turning 18 is a good time to review your plans
Your child’s 18th birthday can be a useful reminder to look at your Will and wider estate planning.
Your family’s circumstances may have changed considerably since your Will was first prepared. Your children may now be adults, relationships may have changed, and the people you originally chose as executors, trustees or guardians may no longer be the most appropriate choices.
It can also be a good opportunity to consider whether your children are now old enough to take on additional responsibilities, such as acting as an executor or attorney, and whether you would like to change how or when they inherit.
There is no one-size-fits-all approach to these decisions. The right arrangements will depend on your family circumstances, your wishes and the assets you have.
If your child is approaching 18, or has recently turned 18, it may be a good time to review your Will and wider estate planning to make sure they continue to reflect your wishes.
If you would like to discuss your circumstances or review your existing arrangements, please get in touch with our Private Client team. We would be happy to help you understand your options and ensure your Will and estate planning remain appropriate for your family.