Where a grant has issued for the use of minors, limited until one of them attains the age of 18, and one of them has now attained 18, who holds the continuing minority interest on trust?
We have an estate where the executors renounced. The residuary beneficiaries were minors so two of the parents took out a grant of letters of administration with will annexed which was limited until one of the children turned 18. The administration of the estate was completed before one of the children turned 18 but PR’s took their time deciding how to deal with the funds.
One of the children is now 18 and can take their share but the other children’s money needs to be invested until they attain 18. Can the previous administrators under the limited grant appoint trustees of the trust or does this need to be done by the 18 year old? Does the 18 year old need to take out a cessate grant in order to do this? There is nothing left to administer, it just needs to be distributed.
I was about to post this question and realised I had already posted in 2019 but no responses recieved.
The Estate Accounts were signed off by the PR’s under the limited grant in 2017 but one remaining original asset has just matured. Is it necessary to take out another Grant? I don’t believe so as all assets have been cashed.
Does the 18 year old need to be involved? My feeling is that the parents (Administrators under the Limited Grant) will remain Trustees for the remaining minor children and they would need to appoint the 18 year old as an additional Trustee if she wants to be involved?
The answer may depend upon the wording of limitation on the grant.
If the grant is limited to the minority of the beneficiary then, in strictness, once a beneficiary attains age 18 the authority under the grant lapses, and a new grant must be obtained.
I have seen some grants issued in respect of minors which provide for the grant to remain valid until the minor applies for a grant.
If the grant contains the later limitation then, unless the minor applies for a grant, the current administrators’ authority under their grant continues.
There is, of course, the possibility/probability that the institution with which the maturing asset is held would not understand the difference and pay out on the grant regardless. But that is not something that should be tested.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals