How old must a beneficiary be to inherit?
Legal Capacity and the Age of Majority
Why you might choose an age beyond 18
1. Financial maturity
- Life experience: By age 21 or 25, most young adults have lived independently—renting, budgeting, and managing basic expenses—which helps them appreciate and responsibly handle larger sums.
- Career foundation: Many beneficiaries at this stage are finishing tertiary education or have begun their careers, giving context to an inheritance’s purchasing power.
2. Protection from impulsivity
- Delayed gratification: Waiting until 25 or 30 can reduce the risk of impulsive spending or poor investment choices made during early adulthood.
- Structured support: A trustee can continue guiding investment and distribution decisions until the beneficiary demonstrates consistent financial responsibility.
Common ages and their pros & cons
| Age | Advantages | Potential Drawbacks |
|---|---|---|
| 18 | Legally simple; no extended trust management | Beneficiary may lack maturity; higher risk of waste |
| 21 | Aligns with many cultural adulthood markers | May still be financially inexperienced |
| 25 | Greater independence and work experience | Longer trustee commitment; potential court disputes |
| 30+ | Full maturity; career & family stability | Risk of court applications for early release; trustee fatigue |
Practical considerations for trustees
- Trustee selection: Choose trustees—individuals or a professional firm—willing to serve for the full duration of the trust. Longer deferral ages require trustees with lasting commitment and expertise.
- Family provision applications: Excessively delayed inheritances (e.g., 35+ years) can trigger family provision claims, where a disappointed beneficiary applies to court for earlier access. Balancing delay against potential disputes is key.
- Staggered distributions: For very large estates, consider phased payments (e.g., 25% at 21, 25% at 25, balance at 30) to combine early access with ongoing oversight.
Best practices and recommendations
Tailor to the Individual: Every beneficiary is unique; consider factors like temperament, financial acumen, and life stage.
Include Testamentary Trusts: Using testamentary trusts allows continued asset protection, tax planning, and professional management—even after the nominal distribution age.
Regular Reviews: Encourage executors to revisit trust terms periodically, ensuring age thresholds and distribution schedules remain appropriate as laws and family circumstances evolve.
Conclusion
While the law sets 18 as the minimum age to inherit, many testators choose 21, 25, or even later to safeguard their legacy and support beneficiaries’ financial maturity. Thoughtful planning—selecting the right age, trustees, and distribution structure—helps ensure your estate fulfills its purpose: providing for loved ones wisely and effectively.
