Friday, August 15, 2014
The problem of minors being designated as the recipient of inherited property can happen by accident. While a court can fix this type of accidental inheritance problem through a guardian or by delaying the property distribution, this problem can be avoided by using estate planning tools to prevent an accidental inheritance of property by a minor. Here are six ways to avoid this type of problem:
- Include in the will that the executor can distribute the property left to minor to a custodian instead.
- Give the executor the ability to use the funds left to the minor for the benefit of the minor.
- Create a contingent trust that is effective only if a minor is left property.
- Don’t name current minors as beneficiaries for any accounts.
- Remember to name a successor owner and contingent successor owner, if allowed, for all college savings accounts.
- Create intervivos trusts with minors as the beneficiaries.
See Sandra W. Reed, Estate Planning and Minors, YourGlennRoseTX, Aug. 7, 2014.