Leaving money to grandchildren is one of the most rewarding parts of writing a will - and one of the most easily mishandled. The structures look simple, but the choices about age, trust, tax, and fairness matter more than people expect. Get them right and the money does what you intended. Get them wrong and a generous gift becomes a source of family tension.
This guide walks through how to leave money to grandchildren in a UK will: the standard structures, the inheritance tax angles, and the practical decisions only you can make.
The simplest version
A typical clause in a grandparent's will reads something like:
> "I give the sum of £10,000 to each of my grandchildren living at the date of my death, contingent on their attaining the age of 21."
That single sentence does several things at once:
- Defines who qualifies. "Living at the date of my death" excludes future grandchildren born after you've died. You can change this to "living at the date of distribution" if you want to include them.
- Sets a release age. Children can't legally hold money outright, so it's held on trust until they reach the age you specify. Common choices: 18, 21, or 25.
- Treats grandchildren equally. Each living grandchild gets the same fixed amount - simple, fair, easy to administer.
For most grandparents, that simple version is enough. But it's worth knowing the variants - and why some are worth choosing.
Choosing the release age
Children inherit at 18 by default in England and Wales, but you can specify any age in the will. The trustees hold the money on trust until the chosen age and can usually advance funds for "maintenance, education or benefit" before then.
Age choices people commonly make:
- 18 - the legal default. Convenient but young; many grandparents feel 18-year-olds aren't quite ready for a substantial lump sum.
- 21 - a common compromise. Old enough to be sensible, young enough to help with university, a first car, a deposit for renting.
- 25 - the most common "deliberate" choice. Old enough to have settled into adult life and made some financial mistakes already.
- Staged - a portion at 18 (so they're not penniless), more at 21, the balance at 25. Slightly more complex to draft but very flexible.
If grandchildren span a wide age range, the staged structure can stop the older ones receiving everything outright while the younger ones still wait. (If this is the kind of thing you'd rather just be walked through, the Trusted Hands will builder handles age structures cleanly.)
Equal shares versus tailored amounts
Most grandparents want to treat all grandchildren equally. It's the cleanest, kindest default and removes any sense of favouritism.
A few situations where tailored amounts can make sense:
- A grandchild with a disability - an enhanced share, often into a disabled person's trust to preserve means-tested benefits.
- A grandchild estranged from the family - some grandparents include them on the same terms as the others; some make a smaller token gift; some leave them out and accept the 1975 Act risk. There's no easy answer.
- A grandchild already provided for - perhaps from another grandparent's estate or a parent's gift. Some grandparents give a smaller amount to balance.
If you do tailor amounts, explain why in a letter of wishes. The non-binding personal letter alongside the will is often the most-treasured document for grandchildren reading it years later.
What if a grandchild dies before you?
Standard wills handle this through "per stirpes" wording - the share passes to that grandchild's own children, if any. If they have no children, the share is usually divided among the remaining grandchildren.
Without that wording, the gift simply lapses and falls into residue, which may not be what you intended.
Bigger gifts, separate trusts
For larger gifts (typically £100,000+), a single inherited lump sum at 18 or 21 starts to look unwieldy. Options:
Discretionary trust for grandchildren
You leave a sum into a discretionary trust for the class of grandchildren. Trustees decide who gets what and when, within the class. This gives flexibility for life events (university, first home, illness) and can be very tax-efficient over multiple generations.
It costs more to set up and run, and trustees take on real responsibility. The structures are usually drafted by a specialist private-client solicitor.
Bare trust
Each grandchild has a defined share held in a bare trust - effectively a wrapper that holds the money on their behalf until they reach 18. The grandchild is the legal owner from the start (for tax purposes) but the trustees control access until 18.
Simpler than a discretionary trust, less flexible. Useful for clean per-grandchild gifts.
Educational trust
A trust specifically scoped for education - school fees, university costs, gap-year travel. Tighter than a bare trust, narrower in purpose, often appreciated by parents who want help with school fees without giving the grandchild a windfall.
For complex estates, we recommend you seek assistance from a Trusted Hands Advisor or your own legal advice.
The inheritance tax angles
Gifts to grandchildren in a will are subject to the same IHT rules as gifts to anyone else. The key numbers:
- Nil-rate band: £325,000 per individual, frozen until April 2030.
- Residence nil-rate band: £175,000 if you leave the family home to direct descendants - and grandchildren count as direct descendants. So leaving the home to grandchildren rather than children doesn't lose you the residence nil-rate band.
- Charitable rate: leaving 10%+ of the net taxable estate to charity reduces the rate on the rest from 40% to 36%.
A common structure for grandparents with larger estates is to use lifetime gifts alongside the will: gifts made while you're alive, which fall outside the estate after seven years. Our seven-year rule guide explains the mechanics.
Grandparents with growing estates often combine:
- Annual exemption of £3,000 a year (per giver), which can be split between grandchildren.
- Small gifts exemption of £250 per recipient per year.
- Wedding gifts - up to £2,500 from a grandparent on a grandchild's wedding, free of IHT.
- Regular gifts out of income - a powerful but underused exemption for ongoing financial support.
- Larger lifetime gifts that fall outside the estate after seven years.
The combined effect over a decade or two can move significant value to grandchildren without the will having to do all the work. Our inheritance tax guide walks through the details.
A note on Junior ISAs and bare trusts during life
If you'd rather start contributing during your lifetime rather than waiting for the will to pay out, Junior ISAs (up to £9,000 a year, paid in by anyone) are a clean and tax-efficient option. The grandchild owns the account and accesses it at 18.
A bare trust can hold larger lifetime gifts. The grandchild is the beneficial owner, but the trustees (often the grandparents themselves) control the account until 18.
These complement a will gift rather than replace it.
> Ready to put your wishes in writing? Trusted Hands turns these decisions into a 15-30 minute guided builder. Start free → - only pay when you download.
Talking to the parents
A grandparent's gift to a grandchild can interact with the parents' own plans - school fees, university funds, deposit help. It's often worth a conversation in advance to make sure things complement rather than collide.
Some questions worth raising:
- Are the parents already saving towards university? Should your gift be timed differently?
- Is the parent comfortable with the release age you've chosen?
- For larger gifts, is a trust the right structure - and would the parents accept being trustees?
- Does the grandchild have any specific needs (disability, mental health, addiction history) that should shape the structure?
A short, kind conversation prevents a lot of awkwardness later.
Common mistakes to avoid
- No release age specified. Defaults to 18, which most grandparents would have changed if asked.
- No "per stirpes" provision. A predeceased grandchild's gift fails instead of passing to great-grandchildren.
- Mixing grandchildren with children unhelpfully. "To my children and grandchildren equally" is ambiguous - is it per head, per stirpes, equal shares between two generations? Be specific.
- Forgetting after-born grandchildren. "Grandchildren living at the date of my death" excludes those born later. If you want to include them, say so.
- Naming individual grandchildren by name only. If a new grandchild arrives after the will is signed, they're excluded unless you update.
Our will mistakes guide covers these and more.
> Ready to start your will? Trusted Hands turns these decisions into a 15-30 minute guided builder. Start free → — only pay when you download.
Frequently asked questions
Can I leave money to a grandchild I haven't met yet?
Yes - "to all my grandchildren living at the date of my death" automatically includes anyone born after the will is written but before you die. If you want to include those born after your death (rare but possible with a long trust), the drafting needs to be more specific.
What age is best for grandchildren to inherit?
There's no right answer. 18 is the legal default and the simplest. 21 or 25 are common deliberate choices. Staged distributions across all three are common for larger gifts.
Can my grandchild's parents access the money before they turn 18?
Trustees can advance funds for the child's "maintenance, education or benefit" - so yes, school fees, music lessons, a laptop for university can all be paid out before the child reaches the release age. The parents don't get the money themselves.
Do grandchildren count for the residence nil-rate band?
Yes. Grandchildren are direct descendants for the £175,000 residence nil-rate band. Leaving the home to grandchildren preserves that allowance.
What if I want to leave more to one grandchild than another?
You can - it's your estate. Common reasons (disability, special need, estrangement) all justify it. Record your reasons in a letter of wishes alongside the will. Be aware that an excluded child or grandchild may make a 1975 Act claim, but a clear letter of wishes makes the claim much harder.
Ready to write your will?
Trusted Hands is a guided, plain-English will builder. You answer simple questions, see your draft as you go, and only pay when you're ready to download.
- Free to start - no card details to begin
- Smart Will Engine - only asks what's relevant to your situation
- Fixed price - no hourly bills, no surprises
- Annual updates option - keep your will editable as life changes