Government plans threaten trusts for the under 25s

Due to the changes in the 2013 Finance Bill, thousands of wills may need to be rewritten to protect the interests of children, says the government.

The proposal is expected to be finalised at the end of March 2013 and attempts to simplify trust legislation in the UK.

The Law Society has warned this will affect any trusts that were set up to help support children under the age of 25 in the event of their parents dying.

Trustees may be restricted to the amount of control they have over the trust for the child. This means that any assets they would normally distribute to the child or beneficiary of a trust, may have to be approved by a court.

If the proposal becomes law, trustees may not be able to buy a house for the child, or meet education or maintenance costs without paying for expensive court fees, the Law Society has announced.

Lucy Scott Moncrieff, president of the Law Society said:

'I'm sure the government doesn't intend to penalise orphaned children, or to require a significant number of parents to redraft their wills to protect their children's futures. We all know that unintended consequences can arise from legislation and it is very fortunate that the watchfulness and diligence of our expert solicitor members gives the government the opportunity to put this right before it creates injustice, confusion and unforeseen expense.'

The team at Ross Legal LLP can help will all Will, Probate & Trust matters. If you believe your beneficiary will be affected by the Government's plans, contact us today to ensure your will is up to date.

Ross Legal LLP

Will, Probate & Trust Solicitors
Manchester, Prestwich, Whitefield, National