Leaving Money to Grandchildren in Your Will

Leaving money to grandchildren in your will is straightforward in principle, but a few decisions — how you name them, what happens if a parent dies first, and how money is held for under-18s — make a real difference. Here is how to get it right.

Naming grandchildren — and 'per stirpes'

You can leave a grandchild a fixed cash sum (a pecuniary legacy), a specific item, or a share of what is left (a residuary share). The key decision is what happens if one of your children dies before you. A per stirpes instruction means each branch of the family inherits its share, so a deceased child's portion passes down to their children — your grandchildren — rather than being redistributed among your surviving children.

Spelling this out clearly avoids disputes and makes sure your intentions are honoured. Because the wording carries real legal weight, a will should be drafted by a solicitor rather than improvised.

Money for under-18s: trusts and the age of access

A child under 18 cannot legally inherit outright, so a gift to a young grandchild is normally held in trust until they come of age. You can decide the age at which they receive it — commonly 18, but many grandparents choose 21 or 25 so the money arrives with a bit more maturity — and appoint trustees you trust to manage it sensibly in the meantime.

There are specific trust types for this (such as bereaved-minor and 18-to-25 trusts) with their own tax treatment, so this is an area where professional advice pays for itself. A qualified financial adviser working alongside your solicitor can help you choose the right structure.

The residence nil-rate band — a reason to leave the home to descendants

If you leave your home to direct descendants — which includes grandchildren — your estate may claim the residence nil-rate band of up to £175,000 on top of the standard £325,000 (figures illustrative, sourced as of June 2026, per GOV.UK). For a couple, that can mean up to £1 million passes tax-free. It is one reason the way you leave property is worth planning carefully.

Remember too that from April 2027 unused pension pots are due to count towards your estate, which may change how much headroom you have. It is worth taking time to model your IHT position so the bequests in your will line up with your tax-free allowances.

Executors, guardians and keeping it current

Two practical points. First, choose executors who are willing and capable — they will administer everything. Second, if any grandchild might be left in your care, your will is where you can record your wishes on guardianship. And review the will after big life events: a new grandchild, a marriage, a death, or a change in the rules.

For the wider context — lifetime gifting, the seven-year rule and the inheritance-tax thresholds — read our grandparents' guide to gifting and legacy, then have a solicitor prepare the will itself.

This is general information, not personal financial, tax or legal advice. Every figure is illustrative and approximate, sourced as of June 2026, and the rules change — speak to a qualified financial adviser, and a solicitor for wills and trusts, before you act.