17th December, 2025
Many Australians choose to leave property or assets to their children or grandchildren. However, complications arise when a beneficiary is under eighteen years old. In Australia, a minor cannot legally receive an outright gift under a Will. Therefore, careful estate planning becomes essential.
When a child is under eighteen, an adult must manage the gift. The Will must clearly outline how the asset is held. It should also explain who controls it and when the child benefits. Without proper planning, disputes and delays can arise.
Executor Holding the Asset on Trust
One common solution involves the executor holding the asset on trust. In this arrangement, the executor manages the property until the child turns eighteen. As a result, the executor takes on ongoing legal responsibility.
If the bequest involves money, it is usually kept in a separate account. Alternatively, larger sums may be invested for growth. However, this can create additional risk and complexity.
Where multiple children benefit, separate arrangements are needed as each child reaches adulthood at a different time. Consequently, administration can become demanding.
This option works best when the child will soon turn eighteen.
Parent or Guardian Managing the Gift
Another option allows a parent or guardian to manage the bequest. This approach is often used for smaller gifts. Accordingly, the executor avoids long-term administration. However, this option relies heavily on trust. There is no guarantee the gift will remain intact. Over time, funds may be reduced or lost. Therefore, this option suits limited circumstances only.
Testamentary Trusts for Greater Control
A testamentary trust offers greater flexibility and protection. It is commonly used for property or larger estates. Importantly, the trustee controls distributions based on maturity. The trustee may distribute income for education or living costs. In addition, access to capital can be delayed beyond eighteen. This allows the child to benefit when ready. As a result, the trust adapts to changing needs.
Choosing the right trustee is critical. They may manage assets for many years. Although guidance can be included, trustees retain discretion.
Why Professional Advice Matters
Every family situation is different. Therefore, estate planning should never rely on generic clauses. Clear drafting reduces conflict and protects children. Proper advice ensures assets are managed responsibly.
In conclusion, leaving property or bequests to minors requires careful legal planning and the right structure. Our team at Castrikum Adams Legal provide Estate Planning services in the Northern Rivers, including Byron Bay, Bangalow, Mullumbimby, Brunswick Heads, and Lismore, Ballina and Ocean Shores.
If you found this blog helpful, please check out our other blogs on Estate Planning.
The content of this Blog does not constitute legal advice, is not intended to be a substitute for legal advice and should not be relied upon as such. You should seek legal advice or other professional advice in relation to any specific matters you or your organisation may have.