Did you know you can’t disinherit a child in Scotland?

Sometimes, people may have specific requirements as to who shouldn’t receive a share of their assets after their deaths – particularly when it comes to second families or estranged children. “This is common and can be complicated for the family as if not dealt with properly it may result in a child being ‘sideways disinherited’ due to a second marriage, or in a child inheriting that you would rather not have,” explains Tony Marchi, Principal at ILAWS Scotland.

“Under Scots Law, as a parent, you cannot completely disinherit your children in Scotland, but you can minimise their legacy. This must be specifically dealt with in a Will to prevent there being a challenge to your Will after your death.

“It is simply not enough to ignore a child or assume that your children will eventually inherit from your Will unless special gifts of property or again a trust is used to ensure that your wishes are carried out without fuss.”

What is a Trust?

There are so many different types of Trust, it is no wonder it can be confusing. However, principally most work in the same way.

“You as the Grantor ask for the Trust to be set-up to protect an asset (from whatever could threaten that asset),” explains Tony. “You appoint Trustees, usually yourself or trusted members of your family or both, who are now the only people in the world who have any control or influence over the Trust. You also appoint the beneficiaries of the Trust – the ones who will eventually own the asset.

“The asset is held in Trust until such times as it becomes prudent for it to pay out to the beneficiaries depending on the instructions in the Trust.

“It is a safe way of ensuring no-one else can ever go after the asset – it must end up with the named beneficiaries. Everything really is in the set-up, thereafter there is little for anyone to do and at ILAWS Scotland we set everything up for you.”