Hi, my name is Bill Horton. I’m an attorney with Dent Coulson Elder Law. We’re pleased to present these videos, whether you’re a client or someone in the community interested in learning more about what happens when a minor receives an inheritance. These videos cover essential topics in estate planning and elder law, especially focusing on the implications of a minor receiving inheritance. We hope you find them helpful. Thank you for watching.
Today, I want to discuss a critical topic: What happens if a minor receives an inheritance? This situation can be especially challenging, particularly if the child’s guardians or primary caregivers have passed away or are unable to care for the child. Understanding the process of a minor receiving inheritance is crucial for anyone involved in estate planning.
There are effective ways to manage the situation of a minor receiving inheritance, even though it can be difficult. However, there are also default methods that come with significant drawbacks. Let’s explore three key scenarios:
- No Will in Place: If someone passes away without a will, the assets that the minor is set to inherit are placed in probate court. This process can take many months, even if the court appoints a state guardian or a family member. During probate, the minor receiving inheritance cannot access the funds.
- Will in Place: If the deceased had a will, they at least named the person responsible for managing the child’s financial and medical care. This will reflects the deceased’s intentions and provides some guidance for the minor receiving inheritance.
- Will and Trust Combination: Having both a will and a living trust offers significant advantages for a minor receiving inheritance. The inheritance can become available within weeks, rather than months. A trustee, named in the trust, can manage the minor’s inheritance specifically, instead of leaving decisions up to a judge. Parents often choose an age at which the minor receiving inheritance gains full control over their finances—whether it’s 21, 25, or 30. A living trust allows for flexibility, such as releasing funds gradually or tying them to milestones like college education.
These three scenarios show how different approaches to estate planning can lead to vastly different outcomes for a minor receiving inheritance. I hope this video, along with our other resources, helps you understand why it’s essential to have a specific and sophisticated plan in place for your children or grandchildren. Proper planning ensures that a minor receiving inheritance gets the care they need during the inheritance process.
Thank you for your time.
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Thank you for watching our Elder Law Minute. If you need help with powers of attorney or any other estate planning needs, please call Dent Coulson Elder Law.
Also looking for information about Medicaid and Asset Preservation? Visit these articles:
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Dent-Coulson Elder Law is dedicated to providing families in the St. Louis area with their Elder Law needs. Our practice areas include Asset Preservation Planning, Veterans Benefits, Medicaid Eligibility, Alzheimer’s Planning, Special Needs Planning, Estate Planning and more. We understand the financial challenges you may face as you and your loved ones grow older. At Dent-Coulson Elder Law, our clients’ well-being is our number one priority. For immediate help, call (618) 632-7000 (IL) or (314) 567-9292 (MO), or Contact Us and we will get in touch as soon as possible.
