I am acting for a grandparent who wishes to set up a bare trust for his grandchildren. However, at present he only has one granddaughter although his son and daughter-in-law plan on having more children. Is it possible to create a bare trust that covers all of his grandchildren, even if some haven’t been born yet? Or would he have to create a new bare trust every time a new grandchild arrives? Thank you!
It is possibly to set up a bare trust to cover grandchildren that haven’t been born yet. TSEM1563 - Introduction to trusts: types of trust: bare or simple trust - HMRC internal manual - GOV.UK (www.gov.uk) This will show you some examples of wordings that can be used.
Kim Jarvis
I disagree (sorry!)
Children cannot be absolutely entitled if there is no certainty they will ever exist.
Kim’s link contains two examples that are bare trusts (both for clearly ascertained children) and one example that is not a bare trust.
It is possible to set up a bare trust in a will that will apply to beneficiaries alive when the testator dies (so could include those not born at the time the will is executed), but that bare trust does not come into effect until the testator dies.
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Hi Andrew,
Don’t apologise for disagreeing that’s what the forum is intended for. On re reading the query sorry Jane I was thinking about on death not during lifetime.