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Minor child inheriting? – Problems solved

Minor child inheriting? – Problems solved

 

The two problems (assets frozen for minors; then 18 year olds spending foolishly) can be eliminated when parents make a living trust and establish sound rules for handling assets of their minor children. This is where estate planning documents (i.e., a living trust) can be invaluable.

A court will not be involved because the trust holds the assets. A judge will not be involved because the trust names a person (the successor trustee) to control and manage the assets. There is no need for a guardian.

The “magic age” of 18 is no longer pertinent for children because assets are not titled to them, though they benefit from the assets. The successor trustee holds title to the assets, regardless of the ages of children (even for adult children or beneficiaries) until the time directed by the trust for the distribution of assets. This period could be for years and decades past 18.

There is little flexibility when a court is involved. The court cannot disregard the law and set new rules. There is great flexibility in a living trust. It can be as detailed as the client desires.

 

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