Section 3(3) Children Act 1989 provides that the person with parental responsibility for a minor (under the age of 18) has the same right as a Guardian to receive or recover in their own name assets to which the minor is entitled, for the minor’s benefit.
However, a minor themselves cannot give a good receipt unless the Will document itself provides for this.
A worked example on this is as follows:-
David is an Executor under the Will of his late brother Adam. Adam left pecuniary legacies of £10,000 to each of his three grandchildren absolutely; Samantha and Michael are 21 and 23 – David can simply provide them with a cheque and request a receipt – but Robert is 13.
Since the Will is silent as to receipt by minors (or receipt on their behalf), David is uncertain what to do in relation to Robert. He would prefer to hand over the £10,000 and complete his duties.
David has several options to assist him in discharging his duties, most of which are disproportionate for such a small legacy, and likely to be unattractive, since they require a degree of extended involvement:
Because Robert is absolutely entitled to the legacy, and there are no Trustees holding the interest under the Will, David can exercise the power given under s42 Administration of Estates Act 1925 to appoint two or more individuals as Trustees to hold the legacy until Robert reaches 18. The appointment can be made before the administration of the estate is finalised, and, once the Trustees have provided David with a Receipt, he will be discharged from any liability.
David could pay the legacy into Court, discharging him from liability on a Receipt or certificate given by an officer of the Court.
David could, in his capacity as PR, retain Robert’s legacy until he reaches his majority at 18. In the meantime, he should of course invest the legacy and may exercise the statutory powers of maintenance and advancement under s31 and s32 Trustee Act 1925.
One other option available to David, which may be overlooked, is for him to pay the legacy to Robert’s mother (or other individual with parental responsibility) under the powers given in the Children Act 1989 (CA 1989).
Before CA 1989 came into force, a PR could not obtain good receipt if they paid a minor’s legacy to a parent or any person other than a Guardian, unless the Will authorised such a payment either expressly or by implication, or the minor ratified the payment in due course when they reached the age of majority. However, and although it is still desirable for this clause to be included in the Will, the payment can still be made to their parent provided this Receipt is given.