Why Careful Planning Matters
You want to ensure your children are always cared for, but leaving assets to minor children requires more than good intentions. Without the right legal tools, common mistakes can lead to court involvement, delays, and unnecessary expenses.
Mistake #1: Using a Simple Will
Many parents believe a simple will is enough to provide for their children. While a will allows you to nominate a guardian, it often overlooks how inheritances are managed. A simple will requires that children receive their inheritance outright, in one lump sum, once they reach adulthood. Most parents prefer gradual distributions, but a will doesn’t offer that flexibility.
Importantly, the inheritance doesn’t automatically go to the guardian. Legally, it belongs to the children, and because minors can’t hold significant assets, the court must appoint someone to manage the funds until the child becomes a legal adult. At that point, the remaining assets are handed over in a lump sum, with no restrictions.
Mistake #2: Failing to Avoid Court Oversight
Court conservatorship for minor children is slow, expensive, and rigid. Nonordinary expenses—like tutoring or specialized therapy—require separate court approval. Every court appearance means fees, possible compensation for the conservator, and attorney involvement, all of which reduce your children’s inheritance.
The Right Approach: Using a Trust
A trust is a better way to leave assets to minor children. There are two main options:
- Testamentary Trust: Created in your will, this trust lets you name someone to manage the inheritance and decide when and how your children receive it. However, it only comes into existence after probate, which can be slow and public.
- Revocable Living Trust: This trust is created immediately and can govern your children’s inheritance if you die or become incapacitated. It’s private, avoids court involvement, and gives you control over distributions based on age, milestones, or specific needs. It also protects assets from creditors, divorcing spouses, and poor spending decisions.
Benefits of a Living Trust
- Choose the exact age or milestones for distributions
- Provide for each child’s unique needs
- Protect assets from creditors and divorce
- Avoid court delays and expenses
- Maintain privacy for your family
Let’s Create a Plan That Works
Leaving assets to minor children is about more than just making a gift—it’s about protecting what you’ve worked hard for and ensuring your children’s future security. Rincker Law can help you create a revocable living trust that works exactly as you intend.
Contact us today at (217) 774-1373 to schedule a consultation to learn more about leaving assets to minor children and protecting the people you love most.