Estate Planning and Minors: How To Protect Minor Beneficiaries From Themselves and Others Through Minor Trusts

When It Comes to Estate Planning and Minors, We Need to Plan to Protect Them

What are some considerations when it comes to estate planning and minors? There’s a very effective way of ensuring your assets are passed smoothly to your heirs. The solution is a well-crafted Estate Plan. This goes beyond just having a Will.

As I often emphasize in my seminars and panel discussions, there are three essential estate planning documents everyone over 18 should have. These include a Financial Power of Attorney, a Healthcare Power of Attorney, and a Will.

Want optimal protection when it comes to estate planning and minors? Incorporating a trust strategy into your estate plan can provide added security and flexibility.

If you have young children, your estate plan must address their care and financial security in the unfortunate event that both parents are unable to do so. This involves more than just naming a guardian; it also requires setting up specific trusts that safeguard your children’s financial future.

For example, a Predatory Sub-Trust safeguards your children from potential pitfalls. It helps prevent things like addiction or poor money management. This ensures their financial well-being is not compromised.

Another vital component when it comes to your estate planning and minors, is establishing a Minor Trust.

A Minor Trust can limit or even prohibit access to the funds until your children reach a specific age. You can choose any age that you believe is appropriate, such as 21, 25, 30, or even 40. Just as you can elect your personal age of financial responsibility, you have control over how they will access to the funds. This can be done through a monthly allowance, key year distributions, or limit the distribution to the Trustee’s discretion.

Structured this way, a Minor Trust ensures your children have access to the resources they need when they are mature enough to manage them responsibly.

By doing so, you can protect your children from making irresponsible decisions that could negatively impact their future. You’ve worked hard to provide for them, and it’s important to ensure that their financial security is preserved, even after you’re gone.

Remember too, that once you’ve created your trust, it needs to be reviewed and updated on a regular basis. If there are births, deaths, marriages, divorces in the family, then the estate plan may need to be updated.

Minor trusts are a critical tool in estate planning, offering protection and peace of mind in an unpredictable world.

Want to ensure your children are cared for and your legacy is preserved? Give our office a call at (470) 235-7868 today. Let us help you create a comprehensive plan tailored to your family’s unique needs.

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!