When putting together an estate plan, there are several key considerations to think about—such as how taxes will be handled and who should inherit your assets. As part of your broader financial planning, it becomes especially important if you want to support or safeguard younger family members. In these cases, a few extra steps may be necessary.
At its core, essential estate planning involves outlining how you want your property, finances, and other assets to be managed both later in life and after your death.
Although it’s not always easy to think about the future in this way, having a clear plan in place gives you peace of mind that your wishes will be respected.
If you have children, grandchildren, or other young relatives you want to include, these steps can help ensure they’re looked after in the way you intend.
Use your will to name a guardian for a child
For parents or legal guardians, one of the most important steps in essential estate planning is deciding who would look after your child if you’re no longer around.
In most cases, if one parent dies before the child turns 18, the surviving parent automatically takes on full parental responsibility—even if someone else has been named informally.
However, if both parents pass away or there’s no legally valid will in place, the court steps in to appoint a guardian. This can override informal agreements you may have made with friends or family, potentially leading to decisions that don’t reflect your preferences—or what you feel is best for your child.
Despite this, 2023 data from The Association of Lifetime Lawyers suggests it’s something many parents have overlooked. Indeed, 70% of UK parents had not named a legal guardian to care for their children in the event of their death. So, using your will to name a guardian for your child is an important step.
You can choose to appoint a guardian, subject to conditions being met. For example, you might appoint the child’s grandparents as guardians, provided they are below a certain age and, if not, name a substitute.
A trust might be a useful way to pass on assets to a child
Children can inherit from your estate, but under UK law, they’re not legally able to manage or receive assets directly. That’s why many people include trusts as part of their essential estate planning process.
In most cases, any inheritance left to a child is held in trust until they reach 18. While this can be arranged after death through your will, it’s often helpful to create a trust in advance or include a “letter of wishes” to guide how the assets should be handled.
A trust allows you to appoint one or more trustees who will manage the assets on the child’s behalf. You can set specific conditions on how and when the funds should be used—for example, to cover education costs or everyday expenses while the child is still underage.
Alternatively, you may prefer to give the trustee discretion to use the assets as they see fit for the child’s benefit. If you’re leaving something to a grandchild, you might name their parent as trustee and give them flexibility over how the funds are spent.
You also have the option to delay access to the assets beyond age 18. For instance, you might allow the child to draw an annual income while preserving the core value of the trust until they turn 25—or even longer.
Trusts can be complex, particularly when you have detailed intentions for how the assets should be used, so it’s wise to take legal advice. A financial review is also recommended, as some assets—once placed into a trust—can’t easily be withdrawn or reversed.
Contact us to discuss how you could protect your loved ones
Please get in touch if you’d like to speak to one of our team about your estate plan and the steps you might take to protect young family members. It could offer you peace of mind that your loved ones will be secure should the worst happen.
Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
The Financial Conduct Authority does not regulate estate planning, trusts, or will writing.
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