if you are the parent of minor children, you are undoubtedly concerned that your children will be well taken care of should something happen to you. You may have already planned for this by naming a guardian for your children in your will, thinking that the person you have designated will also have access to your assets to take care of your children.
However, this is not what will happen. If you die while your children are under legal age, the court will likely appoint the person you have named as guardian, but the court itself will control the inheritance until the children reach legal age.
Since minor children cannot conduct business in their own names, they are precluded from inheriting money, property, stocks and other assets directly. Under the Uniform Transfer to Minors Act, a custodial bank account is usually established for minor children and a custodian named to manage the funds. If those funds are significant, the approval of the court may be necessary, which can be time-consuming and expensive.
For parents who want their children’s designated guardian to manage their inheritance, setting up a revocable living trust can be the answer. You will be able to specify the age at which you want your children to receive their inheritance, allowing you to make decisions according to each individual child’s needs and circumstances. Creating a revocable living trust for minor children also protects the inheritance from creditors and even divorce.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.