Executors as Trustees
The Executor will distribute your Estate to the beneficiaries you select in your Will. However, not all beneficiaries will take their gift straight away. The following are examples of beneficiaries that cannot hold their gift in their own right:
- Children (under 18 years of age)
- Persons who have a legal disability (for instance mental incapacity)
In these cases, the Executor has an extra duty, namely, to act as a Trustee for that person until they can take the gift for themselves. So in the case of infant children, that will be until they turn 18 years of age. For some beneficiaries, this may be for the term of their life (eg for the mentally disabled, or comatozed person).
The Executor will need to prudently invest the monies until the beneficiaries can take the gift. How the Executor invests the money is governed by legislation, and they should consult a Solicitor before making financial arrangements.This entry was posted in articles and tagged 18 years, age persons, beneficiaries, cannot, Children, executor, executors, gift, hold, legal disability, mental incapacity, monies, person, solicitor, Trustee.Book mark the permalink