I’ve worked with many Milford grandparents interested in leaving a legacy behind for their grandchildren. A lot of people are surprised when I tell them they could be causing more harm than good if they aren’t careful.
Imagine this for a moment; what would you have done if you were given a large sum of money the day you turned 18 years old? Chances are that you would have blown it, right? You probably would have gotten into a bit of trouble. Most 18-year-olds don’t have the wisdom to understand the proper way to manage money so that it lasts and is available for important things when they need it. However, a qualified Milford will and trust lawyer can help you determine what the best options are for leaving assets to underage beneficiaries, whether those assets are held in a Trust, financial accounts, or as part of a life insurance benefit.
Underage Beneficiaries in a Will or Trust
A good Milford will and trust lawyer will always ask their clients if any of their beneficiaries are underage, or even if they would like to keep younger beneficiaries from accessing their full inheritance until they’ve reached a certain age, which is usually 25. If the children are underage, an adult property guardian must be named since minors are not allowed to inherit property. If a significant amount of property is left to the minor, a Trust should be set up to manage the property until the child comes of age. In fact, Trusts can be used to ensure the minor only receives their full inheritance once they reach a certain age or milestone, such as graduating from college, while at the same time providing assets to make sure the child can achieve that milestone.
Underage Beneficiaries of Financial Accounts
