Sometimes known as a Bereaved Minors Trust or an 18-25 Trust, a Child Trust is a Testamentary Trust (written in the Will) that gives power to your Trustees to manage the inheritance until a child or children reach the age of 25.  

In a standard Will, leaving the inheritance to a person under 18 means that should you die, that beneficiary will be due their share on their 18th birthday. In modern times, this could prove quite overwhelming for the beneficiary as their knowledge towards managing finances in a responsible way, may have not yet materialised.  

In many cases, leaving a substantial amount of money to an 18-year-old could cause more harm than good, depending on the attitude and interests of the beneficiary.  

A Child Trust gives your Trustees the time and capability to influence the children in a positive manner, allowing the Trustees to build a foundation for the beneficiary to help secure their financial future.  

The Trustees may advance some or all of the capital for the benefit of the children for endeavours such as higher education, a deposit on a property and a business start-up to name a few. At age 25, the Trust ends, and the beneficiary then has full access to the funds, having had time to mature enough to handle their inheritance with better conduct.