18 to 25 Trust

An 18-25 Trust created by a Will has the purpose of delaying a child's inheritance beyond the age of 18. Under an 18 to 25 Trust, a beneficiary needs to become entitled to the capital in the trust by the age of 25.

An 18 to 25 trust needs to have been created by the Will of one of the beneficiary’s parents. The advantage over a Bereaved Minor’s trust is that your children’s entitlement will be delayed to age 25 rather than age 18.

There can be an Inheritance Tax cost associated with an 18 to 25 Trust which needs to be considered carefully and compared against the advantages of a Bereaved Minor's trust.

You should consider using an 18 to 25 trust in your Will if you are, or expect to be, the parent or step-parent of a child under the age of 25 and you want your child or children to become entitled to your estate when they reach 25.

If you think your children will not be mature enough to receive large sums of money at age 25, you may like to consider using Discretionary Trusts, or giving your children a life interest in your estate.