Planning for the future often means making sure your loved ones are taken care of, including your children or grandchildren. While you may want to leave money or property to a minor, estate laws have strict rules about how children can inherit assets. Without the right legal structure, their inheritance could be tied up in court, mismanaged, or even lost. It is thus important to set up a plan that protects their financial future.
Under Florida law, minors cannot legally own or control significant assets until they turn 18. If a child is named as a direct beneficiary in a will, the court will usually appoint a guardian to manage the inheritance until the child becomes an adult. However, the guardian may not always be someone the family would have chosen. On top of that, the process of appointing a guardian can be lengthy and costly.
To avoid this, parents and grandparents can use trusts or other legal tools to control how and when a minor receives their inheritance.
A trust is one of the best ways to manage assets for a child. Instead of leaving money directly to a minor, a trust allows you to:
For example, you might decide that a child receives a portion of their inheritance at 18, another at 25, and the remainder at 30. When you spread the inheritance over several years, you help protect the financial future of the minor.
If a minor receives assets outside of a trust, the court may require a guardianship. The guardian will be responsible for managing the child’s inheritance until they turn 18. However, once they reach adulthood, they gain full control of the assets, even if they aren’t financially responsible.
You can set up a trust or appoint a financial guardian in your estate plan to help avoid these issues and give you peace of mind. Contact Schnauss Naugle Law today to create an estate plan that protects your loved ones.
