How to Leave Money to Grandchildren in Your UK Will

Margaret, 68, wanted to help her three grandchildren with university costs and house deposits. She left £150,000 to be divided equally between them in her will. When she died unexpectedly, two grandchildren were 16 and 14—too young to inherit. The money sat in a statutory trust for four years, subject to annual trustee fees of £800.

Her eldest grandchild, 22, received her share immediately and spent £45,000 on a car within six months. Margaret's daughter watched helplessly as her mother's careful savings were eroded by fees and poor decisions.

Margaret's story illustrates a crucial truth: leaving money to grandchildren requires more than good intentions. With £5.5 trillion set to transfer between generations in the UK over the next 30 years, and 70% of grandparents planning to leave inheritance to grandchildren, getting this right matters more than ever.

This guide explains exactly how to leave money to grandchildren in your UK will, covering direct gifts, trusts, tax planning, and the practical decisions that protect your legacy and provide real benefit to the grandchildren you love.

Why Grandparents Are Increasingly Leaving Money to Grandchildren

More grandparents than ever are choosing to leave money directly to their grandchildren rather than solely to their children.

According to research by SunLife, 70% of grandparents are planning on leaving an inheritance to their grandchildren. Even more tellingly, 55% will ring-fence the money to ensure it's passed on—indicating they don't want to rely on their children to pass it down themselves.

A study by Royal London shows that as much as £400 billion is set to skip a generation, passing from grandparents directly to grandchildren. This represents a fundamental shift in how families pass on wealth.

The numbers show the trend clearly: 45% of inheritance is being left directly to younger generations while 55% is passed on by the original beneficiaries. Among those aged 16-34 who receive inheritances over £1,000, 67% receive it from a grandparent or great-grandparent.

Several factors drive this trend. Many middle-generation parents are already financially secure, while younger grandchildren face the housing crisis and soaring education costs. By leaving money directly to grandchildren, you can help with specific milestones—university fees, house deposits, starting a business—when they need it most.

There's also a tax efficiency advantage. Leaving money directly to grandchildren avoids it being taxed twice—once when you die, again when your children eventually die. For estates with inheritance tax concerns, this can save substantial amounts.

Emotionally, many grandparents want to see their legacy make a real difference to their grandchildren's lives rather than simply topping up their already-secure children's estates. This is perfectly legal and an increasingly common estate planning strategy.

Understanding Grandchildren's Legal Rights to Inheritance

Here's what many grandparents don't realise: your grandchildren have NO automatic inheritance rights under UK law unless you specifically name them in your will.

Under the UK intestacy rules, if you die without a will, your estate passes first to your spouse, then to your children. Grandchildren only inherit if their parent—your child—has died before you.

Consider this scenario: David dies intestate with an estate of £500,000. He's survived by two children and four grandchildren. His two children inherit £250,000 each. The four grandchildren inherit absolutely nothing—unless one of David's children had predeceased him.

This is called per stirpes distribution. If a child predeceases you, their share passes to their children (your grandchildren) in equal portions. They "step into their parent's shoes" and share that parent's portion equally.

But if your children are alive when you die and you have no will? Your grandchildren receive nothing.

With a will, you have complete freedom to leave money to grandchildren even when your children are alive. You can name them as direct beneficiaries, specify exact amounts or percentages, and include any conditions you choose.

There is one exception: grandchildren can make Inheritance (Provision for Family and Dependants) Act 1975 claims if they were financially dependent on you or treated as a "child of the family." But these claims are difficult and uncommon.

Without a will specifically naming your grandchildren, they almost certainly receive nothing. It's that simple.

If you want your grandchildren to inherit, you must create a will that says so explicitly.

Direct Gifts to Grandchildren in Your Will

The simplest method to leave money to grandchildren is naming them as direct beneficiaries in your will.

What it means: You specify that a grandchild receives money or assets directly. When you die and your will goes through probate, they inherit just as any other beneficiary would.

How to structure direct gifts:

You can leave gifts in several ways:

Specific legacy: "I leave £20,000 to my granddaughter Emily Rose Smith"
Percentage of estate: "I leave 10% of my residuary estate to be divided equally among my grandchildren"
Specific items: "I leave my collection of gold coins to my grandson Thomas"
Equal division: "I leave £100,000 to be divided equally among all my grandchildren living at my death"

The key advantage is simplicity. There's no trust to manage, no ongoing fees, no complex administration. Your grandchildren receive the full amount you intended.

However, there's an important limitation: grandchildren can't legally inherit until age 18. If your grandchild is under 18 when you die, the money must be held in a statutory trust by your executors until they turn 18. Then it's distributed to them.

Sarah left £30,000 to her grandson who was 15 when she died. Her executors held the money in trust for three years until he turned 18, then distributed it. He received every penny, but Sarah had no control over how he spent it once he turned 18.

This approach works best for:

Grandchildren who are already adults or will be mature enough at 18
Smaller amounts where loss of control is acceptable
Families where you trust the grandchildren to handle money responsibly
Situations where simplicity outweighs the need for ongoing control

The disadvantages:

No control over how money is used once grandchild turns 18
Grandchild may spend unwisely if immature
No protection from creditors or divorce proceedings
Money may need to be held in statutory trust with associated fees if grandchild is under 18

With WUHLD, you can specify exact amounts and percentages, name multiple grandchildren, and include contingencies—all in straightforward language that creates legally binding provisions.

Age-Restricted Gifts: Delaying Access Until Grandchildren Are Older

What if 18 seems too young for your grandchild to inherit a significant amount? You can delay distribution until they reach a more mature age.

How it works: You make the gift contingent on your grandchild reaching a specified age—21, 25, 30, or any age you choose. The legal language might be: "to my grandson when he attains age 25."

This automatically creates what's called a contingent interest trust. Your trustees hold and manage the money until your grandchild reaches the specified age. Only then do they receive it.

Common ages used include 21 (traditional age of majority in common law), 25 (greater financial maturity), and 30 (established in career and life). Some grandparents align the age with specific life stages—25 for a house deposit, 30 for business capital.

During the waiting period, your trustees can typically distribute income from the investments for your grandchild's benefit—education costs, maintenance, medical expenses—at their discretion. The capital remains protected until they reach the specified age.

Robert's will stated: "I leave £50,000 to my granddaughter Charlotte when she reaches age 25. Until then, my trustees may use income generated by this fund for her education and welfare."

Charlotte received help with university costs from the investment income. The capital of £50,000 remained protected until she turned 25, when she used it for a house deposit—exactly as Robert had hoped.

Important consideration: What happens if your grandchild dies before reaching the specified age? Typically, the gift fails and returns to your residuary estate unless you name an alternative beneficiary. You might specify: "If Charlotte dies before age 25, her share passes to her siblings in equal shares."

The advantages:

Prevents immature spending of large amounts
Allows time for grandchild to develop financial responsibility
Can align with specific life milestones
Trustees can still support grandchild with income during waiting period

The disadvantages:

Trustees must manage money for potentially many years
Administration costs accumulate over time
Grandchild may resent the delay
Requires trustees you trust to manage wisely

It's worth considering whether trustees can distribute capital early in genuine emergencies—medical expenses, critical opportunities—or whether the age restriction is absolute.

For many grandparents, age-restricted gifts offer the ideal balance: money is set aside specifically for grandchildren, but protected until they're genuinely ready to handle it responsibly.

Setting Up Trusts for Grandchildren in Your Will

For larger amounts or greater control, you might create a formal trust for your grandchildren in your will.

Why use a trust? Trusts offer control over how and when money is used, protect assets from divorce or bankruptcy, enable professional management, and provide tax planning flexibility.

Important limitation many grandparents miss: You cannot create an 18-25 trust for grandchildren. According to HMRC guidance, 18-25 trusts are ONLY available for your own children, NOT for grandchildren. Money left to grandchildren creates either a bare trust or a relevant property trust.

Let's examine your trust options:

Bare Trust

Your grandchild has an absolute right to the capital when they turn 18. The trustees hold legal title, but the grandchild has the beneficial interest from the outset.

This is simple and qualifies as a Potentially Exempt Transfer for inheritance tax purposes if created during your lifetime. However, the grandchild gains full control at 18—the same limitation as direct gifts.

Discretionary Trust

Trustees have complete discretion over when and how much to distribute. This offers maximum flexibility.

You can specify guidance in a letter of wishes: "I hope the trustees will use this fund for Charlotte's education, first home, or starting a business." But trustees aren't legally bound—they assess circumstances and make decisions.

The trade-off is ongoing inheritance tax charges. If the trust fund exceeds the nil-rate band (£325,000), there are periodic charges every ten years at up to 6% of the excess, plus exit charges when capital is distributed.

Relevant Property Trust

This is the default structure for grandchildren when you want more than a bare trust but less formality than a discretionary trust. Trustees have powers to distribute income and capital but must act in the beneficiaries' best interests.

Like discretionary trusts, relevant property trusts face periodic IHT charges if the fund exceeds the nil-rate band.

Trust structure components:

Trustees: People (or a professional trust company) who manage the trust
Beneficiaries: Your grandchildren who benefit from the trust
Trust property: The money or assets you leave to the trust
Letter of wishes: Your non-binding guidance to trustees about how you hope money will be used

Trustee powers typically include:

Distributing income for grandchildren's benefit
Distributing capital when appropriate
Investing trust funds prudently
Making decisions in beneficiaries' best interests

Consider Robert's approach: he created a discretionary trust with £200,000 for his three grandchildren. He appointed his daughter and a professional trustee to manage it jointly. His letter of wishes suggested using funds for education, house deposits, or starting businesses.

Over the years, trustees distributed £30,000 for university costs, £60,000 for a house deposit, and £40,000 for starting a business. The remaining funds continue to grow for the youngest grandchild. When one grandchild divorced, the trust funds were protected because they weren't in her personal estate.

Ongoing costs to consider:

Annual trustee fees: £500-£1,500+ depending on complexity
Tax returns and compliance
Investment management fees
Professional advice as needed

When trusts make sense:

Larger amounts (typically £50,000+)
Young grandchildren who won't be mature for many years
Concerns about grandchild's money management skills
Desire to protect funds from divorce, bankruptcy, or creditors
Complex family situations requiring professional management
Specific purposes like education or business funding

Tax advantage for grandchildren: Unlike trusts created by parents, income generated by a grandparent's trust for grandchildren can use the grandchildren's personal tax allowances. The anti-avoidance rules that apply to parents' trusts don't apply to grandparents' trusts.

For straightforward situations with moderate amounts, simple age-restricted gifts often work perfectly well. Trusts are powerful tools but shouldn't be overcomplicated when simpler approaches serve your goals.

Grandchildren as Contingent Beneficiaries

You might not want grandchildren to inherit instead of your children—but what if one of your children dies before you? This is where contingent beneficiaries matter.

What it means: Your children are primary beneficiaries. If a child predeceases you, their share passes to their children—your grandchildren. The grandchildren "step into their parent's shoes."

Section 33 of the Wills Act 1837 provides automatic substitution. If you leave a gift to your child who dies before you and that child has children of their own, those children automatically inherit their parent's share in equal portions—unless your will states otherwise.

Example clause: "I leave my estate to my children in equal shares. If any child predeceases me, their share shall pass to their children in equal shares."

This is called per stirpes distribution—by bloodline. Each family line receives an equal share.

James had an estate of £600,000 and three children. His will left everything to his children equally—£200,000 each. His middle child died in an accident, leaving two children (James's grandchildren).

When James died, his two surviving children each received £200,000. The two grandchildren whose parent had predeceased James shared their parent's £200,000—£100,000 each. The money stayed in their family line.

Without Section 33 or an explicit substitution clause, the middle child's share would have been divided between the two surviving children instead. The grandchildren whose parent died would have received nothing.

What if a grandchild also predeceases you? You can specify great-grandchildren as the next level: "If any grandchild predeceases me, their share passes to their children in equal shares." This continues the per stirpes distribution through generations.

You can exclude automatic substitution if you want. Language like "to such of my children as survive me" expressly excludes Section 33. Then if a child predeceases you, their share is divided among your surviving children rather than passing to grandchildren.

The practical importance is clear: contingent beneficiary provisions ensure your child's line isn't accidentally disinherited if they die before you. This feels fair to most families and honours the family structure.

With WUHLD, you can create clear substitution clauses, specify per stirpes distribution, and establish multiple levels of contingent beneficiaries to ensure your estate passes down through family lines as you intend.

Inheritance Tax Planning When Leaving Money to Grandchildren

Understanding the tax implications helps you leave more to your grandchildren and less to HMRC.

The key principle: Gifts in your will to grandchildren are part of your taxable estate, just like any other bequest. They don't escape inheritance tax simply because they go to grandchildren rather than children.

Current IHT rules for 2024-25 set the nil-rate band at £325,000. Estates above this threshold pay 40% tax on the excess. Additionally, if you leave your home to children OR grandchildren, you may qualify for the residence nil-rate band—an additional £175,000.

Combined, a single person can potentially pass £500,000 (£325,000 + £175,000) tax-free. Married couples can combine allowances for up to £1 million.

Here's a calculation example: Your estate is worth £800,000. You leave £200,000 to grandchildren and £600,000 to children. Your entire estate is subject to IHT on the amount over your threshold.

Tax calculation: (£800,000 - £500,000) × 40% = £120,000 total tax bill. Whether you left that £200,000 to children or grandchildren doesn't change the tax on your death.

However—and this is crucial—skip-generation gifts save tax in the long term.

If you leave £200,000 to your children who then leave it to your grandchildren, it could be taxed twice:

First round: Up to 40% when you die
Second round: Up to 40% when your children die

On £200,000, this could mean:

After your death: £200,000 - £80,000 (40%) = £120,000 remains
After your children's death: £120,000 - £48,000 (40%) = £72,000 reaches grandchildren

Total tax: £128,000 on the original £200,000 (64% combined).

Leave directly to grandchildren and it's taxed once: £200,000 - £80,000 = £120,000 reaches grandchildren. You've saved £48,000 by skipping a generation.

Of course, this assumes your children's estates exceed their nil-rate bands. If your children have modest estates that won't face IHT, leaving to them first doesn't cost extra tax.

Lifetime Gifting: The Seven-Year Rule

Gifts made during your lifetime to grandchildren are Potentially Exempt Transfers (PETs). If you survive seven years after making the gift, it's completely tax-free—even if it was £100,000 or more.

If you die within seven years, the gift is brought back into your estate for IHT calculation. However, taper relief applies:

0-3 years: Full 40% rate
3-4 years: 32% (20% reduction)
4-5 years: 24% (40% reduction)
5-6 years: 16% (60% reduction)
6-7 years: 8% (80% reduction)
7+ years: 0% (completely exempt)

Annual exemptions allow you to give £3,000 per year to anyone tax-free, regardless of the seven-year rule. You can also give £2,500 to each grandchild as a wedding or civil partnership gift, completely tax-free.

Comparison: Will Gifts vs Lifetime Gifts to Grandchildren

Aspect	Gifts in Will	Lifetime Gifts (PETs)
Tax treatment	Part of taxable estate, no seven-year exemption	Tax-free if survive 7 years
When grandchild benefits	After your death and probate	Immediately
Control	Can attach conditions, age restrictions, trusts	Lost once given
Flexibility	Can change will anytime	Can't get money back
Your financial security	Keep money for your needs	Must be sure you won't need it
Estate planning	Clear legal framework	Requires careful records

For tax efficiency, many grandparents combine approaches: make smaller lifetime gifts within annual exemptions, and provide main provision through their will.

Professional advice is recommended for complex estates. WUHLD is suitable for straightforward estates where you want to include grandchildren as beneficiaries with direct gifts, age restrictions, or simple trust provisions.

Practical Considerations: Ages, Amounts, and Equal Treatment

Beyond the legal structures, you face real decisions: How much? At what age? Should all grandchildren be treated equally?

How Much to Leave

Consider several factors:

Your children's financial needs—are they secure or do they need substantial support?
Potential care costs in your later years
Your total estate size and what remains after essential bequests
Number of grandchildren
Specific goals: university (£40,000-£50,000), house deposit (£30,000-£50,000), general financial foundation (£10,000-£20,000)

Typical approaches include:

Fixed amounts per grandchild: "£10,000 to each grandchild"
Percentage of estate: "10% of my residuary estate divided equally among grandchildren"
Residue after providing for children: "Specific amounts to children, remainder divided among grandchildren"

There's no "right" amount. It depends entirely on your circumstances and priorities.

Equal vs. Unequal Treatment

Most grandparents instinctively want to treat all grandchildren equally. Equal treatment prevents resentment and feels fair.

However, circumstances might justify different amounts:

One grandchild has disabilities requiring extra financial support
One grandchild showed exceptional care during your life
Different grandchildren have vastly different financial needs
Age gaps mean older grandchildren had advantages younger ones didn't

Emma had four grandchildren. Three were healthy and doing well. Her youngest grandchild had cerebral palsy and would need lifelong support. She left £20,000 to each of the three older grandchildren and £100,000 in a disabled person's trust for the youngest.

She explained this in a letter of wishes. Her family understood and supported the decision.

If you do treat grandchildren unequally, consider explaining your reasoning in a letter of wishes (not legally binding but helps family understand). This reduces the likelihood of disputes and hurt feelings.

Age Gaps Among Grandchildren

What if your grandchildren range from age 22 to age 8? The older one could benefit immediately while the younger waits 10 years or more.

One approach: "All grandchildren receive their share when the youngest turns 21." Everyone receives at the same time with relatively equal maturity.

Alternatively: "Each grandchild receives their share at age 25." The older grandchild receives sooner, but each gets money at the same stage of life.

Consider your goals. Is fairness about equal timing, equal age, or equal amounts?

Unborn Grandchildren

You might have more grandchildren in future. How do you include them?

Option 1: "To my grandchildren living at my death" includes only grandchildren born before you die.

Option 2: "To all my grandchildren whenever born" includes grandchildren born after your death (possible if your child is pregnant when you die, or in unusual circumstances).

Option 3: Update your will when new grandchildren are born.

Most grandparents use "living at my death" and update their wills periodically as the family grows.

Step-Grandchildren

Legally, you can include or exclude step-grandchildren as you choose. The critical point is being explicit about your intention.

If you want step-grandchildren included: "To all my grandchildren, including step-grandchildren, in equal shares."

If you want only biological or adopted grandchildren: "To my grandchildren by blood or adoption in equal shares."

Ambiguity creates disputes. Clarity prevents them.

Special Needs Grandchildren

If a grandchild receives means-tested benefits, an inheritance could disqualify them. Specialist disabled person's trusts allow you to provide for them without affecting benefits.

This is complex and requires professional legal advice. Don't attempt to create these trusts without a solicitor experienced in disability law.

The key is balancing your natural desire for fairness with the practical realities of your family's unique circumstances. There's no one-size-fits-all answer—only what works best for your family.

What If Your Children Are Unhappy About Grandchildren Inheriting?

Family dynamics matter. What if your adult children object to you leaving money directly to grandchildren?

The legal position is clear: It's your estate. You have absolute freedom to leave it to your grandchildren even if your children are alive and object. They can't legally prevent you unless they believe you lack mental capacity.

Common objections from adult children:

"We should inherit first and decide what the grandchildren receive"
"You're undermining our parenting and financial decisions"
"What if you need that money for care costs in your later years?"
"This creates unfair expectations or entitlement in our children"

When these objections might be valid:

Your children might genuinely have a point. You may need care costs that reduce your estate—it's wise to be cautious about committing large amounts. Your children may have immediate financial needs. Parents should control their own children's financial education and development.

Reasons to leave directly to grandchildren anyway:

Your children might be financially secure and don't need the money. You have specific goals for grandchildren like education or housing. Skip-generation inheritance saves substantial tax. You know your grandchildren will benefit rather than seeing money simply top up already-comfortable estates.

Communication approach:

Consider having an open conversation with your children about your intentions before you die. Explain your reasoning without being defensive. Listen to their concerns genuinely.

Many conflicts arise from surprises. If your children know your plans and understand your reasoning, they're more likely to accept them—even if they wouldn't make the same choice.

Compromise Solutions

If family conflict seems likely, consider middle-ground approaches:

Leave the majority to your children with specific amounts to grandchildren
Create a discretionary trust where your children serve as trustees alongside a professional—they have input but money is ring-fenced
Provide for your children's needs first, then leave the residue to grandchildren
Leave lifetime interest to children (they receive income) with capital to grandchildren on children's deaths

Robert wanted to leave £200,000 to his grandchildren for university costs. His daughter objected—she wanted control over when and how her children received money.

The solution: Robert created a trust for £200,000 specifically for grandchildren's education. His daughter served as trustee alongside a professional trustee. She had meaningful input into decisions, but the money was ring-fenced for the purpose Robert intended. Everyone felt heard.

Letter of Wishes

A letter of wishes isn't legally binding but explains your reasoning to your family. It can prevent disputes and help everyone understand your intentions.

"I've left money to my grandchildren because I want to help with university costs and first homes. I know you're financially secure and don't need this money, whereas your children face challenges you didn't. This doesn't reflect any lack of trust or love for you—it's simply practical help where it's needed most."

Inheritance Act Claims

Adult children can make claims under the Inheritance (Provision for Family and Dependants) Act 1975 if they were financially dependent on you or if the will doesn't make "reasonable financial provision."

Simply leaving money to grandchildren doesn't automatically give children grounds to claim—especially if they're financially independent. To reduce risk, ensure your will makes reasonable provision for any genuine dependents, and consider explaining your reasoning.

If family conflict is serious, professional mediation can help you reach an agreement before your will is written. This costs money but can prevent expensive legal disputes after your death.

Ultimately, it's your money and your decision. But thoughtful communication can help your family accept your choices with understanding rather than resentment.

Lifetime Gifts vs. Gifts in Your Will: Which Is Better?

You can benefit your grandchildren through your will, through lifetime gifts, or both. Which approach is best?

Lifetime Gifts Advantages

You see grandchildren enjoy and use the money. There's deep satisfaction in seeing your granddaughter buy her first home or your grandson start university, knowing you made it possible.

Tax-free if you survive seven years. Potentially Exempt Transfers become completely exempt from inheritance tax if you survive seven years after making the gift. This can save 40% compared to leaving the same amount in your will.

You can guide grandchildren in using money wisely. When you give during your lifetime, you're there to offer advice, share wisdom, and help them make good decisions.

Reduce your estate size. If your estate is likely to exceed IHT thresholds, lifetime gifts shrink it and potentially avoid tax entirely.

Provide help when needed most. University at 19, house deposit at 27, business capital at 32—you can time gifts for maximum impact rather than waiting until you die.

Lifetime Gifts Disadvantages

You can't get the money back if circumstances change. What if you need expensive care? What if your investments collapse? Once you've given money away, it's gone.

You lose control once given. Your grandchild can spend a gift however they choose. You can express hopes, but you can't legally enforce conditions.

May create expectation or entitlement. Early gifts can lead grandchildren to expect more or feel entitled. This can damage relationships and work ethic.

If you die within seven years, it still counts toward your estate. The gift isn't tax-free—it's only potentially exempt.

May affect means-tested benefits if you need care. Local authorities can assess gifts made to avoid care costs as "deliberate deprivation of assets."

Gifts in Will Advantages

You retain money for your needs throughout your life. You never face the risk of having given away money you later need.

You can change your mind as circumstances change. Grandchildren's circumstances change. Your financial position changes. Family relationships change. With a will, you can update provisions anytime.

You can attach conditions. Age restrictions, trustees, specific purposes—you have complete control over structure.

Clear legal framework and documentation. Wills go through probate with proper legal processes. Lifetime gifts require careful records to prove they were made and when.

Gifts in Will Disadvantages

Part of your taxable estate. No seven-year exemption period. They're taxed as part of your estate if it exceeds thresholds.

You don't see grandchildren benefit. The satisfaction of seeing them enjoy your generosity goes unrealised.

Subject to probate process. Grandchildren must wait for probate to complete—typically 6-12 months or longer.

No opportunity to guide use. You're not there to offer advice or see whether they spend wisely or foolishly.

The Hybrid Approach

Many grandparents use both methods strategically:

Make small lifetime gifts within annual exemptions (£3,000 per year)
Make tax-free wedding gifts (up to £2,500 per grandchild)
Make regular gifts from surplus income (completely exempt if from normal income)
Provide main provision through will with age restrictions or trust provisions

Example: Dorothy gives £3,000 annually to each grandchild from age 18 to 25—£21,000 total, completely tax-free. Additionally, she leaves £50,000 to each grandchild in her will, to be received at age 30.

Total benefit per grandchild: £71,000. The annual gifts helped during university and early career. The will provision provides substantial capital for house deposits or business opportunities in their thirties.

Dorothy retained most of her wealth for potential care needs. She had the joy of helping during her lifetime. She ensured substantial support for later life stages. And she achieved significant tax efficiency.

The best approach depends on:

Your age and health
Your estate size and IHT position
Your income level and certainty
Grandchildren's current ages and circumstances
Family dynamics and relationships
Your own financial security and potential care needs

There's no single right answer. The optimal strategy balances your financial security, your desire to see grandchildren benefit, tax efficiency, and control over how money is used.

For most grandparents, a combination approach offers the best of both worlds: some generosity now, substantial provision for the future, and flexibility to adapt as life unfolds.

Frequently Asked Questions

Q: Do grandchildren automatically inherit if there's no will in the UK?

A: No. Under UK intestacy rules, grandchildren do not automatically inherit. If you die without a will, your estate passes to your spouse first, then to your children. Grandchildren only inherit if their parent (your child) has died before you. To leave money to grandchildren when their parents are alive, you must name them specifically in your will.

Q: At what age can grandchildren inherit money in the UK?

A: Grandchildren can legally inherit at age 18 in England and Wales. Until then, money is held in trust by your executors. However, you can set higher age restrictions in your will—such as 21, 25, or 30—to delay distribution until grandchildren are more financially mature. The money is managed by trustees until they reach the specified age.

Q: Can I leave different amounts to different grandchildren in my will?

A: Yes, you have complete freedom to leave different amounts to different grandchildren. You might leave more to grandchildren with greater needs, those with disabilities, or based on other factors. However, unequal treatment can cause family conflict. Consider explaining your reasoning in a letter of wishes to help your family understand your decisions.

Q: Do I need a trust to leave money to grandchildren?

A: No, you don't need a trust for most grandchildren gifts. Simple direct gifts work well for adult grandchildren or smaller amounts. Trusts are typically used when grandchildren are very young (under 10), amounts are large (£50,000+), you want ongoing control over how money is spent, or you want to protect money from grandchildren's potential creditors or divorce.

Q: What is Section 33 of the Wills Act 1837?

A: Section 33 prevents a gift in your will from failing if the beneficiary dies before you. If you leave a gift to your child or grandchild who predeceases you, and they have children of their own, those children automatically inherit that share in equal portions. This is called substitution and applies unless your will states otherwise.

Q: Can I leave my house to my grandchildren in my will?

A: Yes, you can leave your house or share of a house to grandchildren in your will. This qualifies for the residence nil-rate band (additional £175,000 IHT threshold) just as leaving to children does. Consider whether grandchildren are old enough to manage property, whether it should be sold with proceeds distributed, and how multiple grandchildren would share ownership.

Q: Does leaving money to grandchildren instead of children save inheritance tax?

A: Leaving money to grandchildren in your will doesn't reduce inheritance tax on your death—gifts to anyone other than a spouse are part of your taxable estate. However, it can save tax in the long term by avoiding double taxation. If you leave money to children who then leave it to grandchildren, it could be taxed twice (up to 64% combined). Leaving directly to grandchildren means it's taxed only once (40%).

Create Your Will and Provide for Your Grandchildren Today

Leaving money to grandchildren in your UK will requires more than good intentions—it requires clear legal provisions that ensure your wishes are followed.

Key takeaways:

Grandchildren have NO automatic inheritance rights in UK law—they must be specifically named in your will to inherit if your children are alive
You can leave money directly to grandchildren (received at 18), with age restrictions (21, 25, 30, etc.), or in a trust for greater control and protection
For tax efficiency, leaving directly to grandchildren saves one round of inheritance tax compared to leaving to children who then leave to grandchildren—potentially saving up to 24% on that portion
Trusts for grandchildren create relevant property trusts with ongoing administration costs and potential IHT charges—18-25 trusts are ONLY available for your own children, not grandchildren
Consider combining lifetime gifts (£3,000 annual exemption, £2,500 wedding gifts) with will provisions to maximise tax efficiency and see grandchildren benefit during your lifetime

Providing for your grandchildren's future is one of the most meaningful legacies you can create. Whether you're helping with education, a first home, or simply giving them a financial foundation, a properly structured will ensures your generosity achieves exactly what you intend.

The peace of mind that comes from knowing your grandchildren will be supported—and that your wishes will be followed—is invaluable.

Create your will and name your grandchildren as beneficiaries today with WUHLD. Our step-by-step platform makes it simple to include grandchildren with complete flexibility.

For just £49.99 (vs £650+ for a solicitor), you'll get:

Your complete, legally binding will that lets you name grandchildren as beneficiaries, specify exact amounts or percentages, and set age restrictions
A 12-page Testator Guide explaining how to execute your will properly
A Witness Guide to give to your witnesses
A Complete Estate Information document to help your executors

You can preview your entire will free before paying anything—no credit card required. No subscriptions, no hidden fees, no solicitor appointments.

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Legal Disclaimer: This article provides general information about leaving money to grandchildren in UK wills and does not constitute legal advice. For advice specific to your individual situation, especially for complex trusts, disabled beneficiary provisions, or estates with significant inheritance tax liability, please consult a qualified solicitor. WUHLD's online will service is suitable for straightforward UK estates; complex situations may require professional legal advice.

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