Estate Planning for Minors

Our estate planning clients often want to give gifts or inheritance to minors when creating their Last Will and Testament. We strongly discourage the practice of direct gifting through a Will, as it can create difficulties for survivors.  Any gifts or inheritance to minors will not be released directly to them before age 18.  This means that the Court will appoint a guardia

n of the funds, which will increase expenses through probate for the assets to be maintained.  The Court appointed guardian will have to deal with restrictions, reporting requirements and, likely, limitations in their ability to fully use the funds for the minor(s).  

The more efficient and cost-effective way to properly maintain the funds for minors is to consider creating a Trust.  A basic Revocable Trust can help facilitate a more complex estate plan for gifting and caring for minors.  While Trusts are more expensive to have drafted and executed, their cost savings are seen by your heirs by handling and processing the asset(s) outside of Probate Court. 

Additionally, a Trust can allow your gifts to be disbursed for the care and education of minors, with larger gift amounts saved until they are older.  If you do not feel comfortable with an 18-year-old receiving a large sum of money, you are not alone.  We often see Trust creators ask that the funds be released when the heir is 25 or older, typically after they have likely had more financial experience and stability.  This means the young adult can receive portions of their funds for care, schooling, etc. but their main gift will come to them in due time, as you direct. 

Not only are there long-term financial benefits with this type of planning, but it also can provide the benefit of privacy.  Without a Trust, any asset processed through Probate Court can be accessed by the public.  A Trust not only avoids Probate Court, but also keeps your personal assets/information private. 

If you're interested in discussing your options for estate planning, call The Law Office of Malyuk McDaniel Kasper today to speak with a knowledgeable attorney. We can be reached at 330.929.9700.