When it comes to the death of a loved one, be it sudden or expected, there are certain aspects of inheritance that have to be taken into account. Inheritance for minors is a big issue that affects how the money is going to be given to the minor and how the estate is going to be passed down. Keep reading to find out more.
What Happens When a Beneficiary Is a Minor?
In many cases, when someone passes and a minor is the beneficiary, it can be challenging to figure out what is going on and how to give the money out. When a minor is the beneficiary of the estate, you will have to hold the money in custody or in a trust of some sort until the minor reaches the age of 18. If the minor is the only beneficiary, they are going to be able to have a trust set up that helps to protect the money for them until they are 18 and until they can actually use the money for whatever purpose they want.
If they are a minor that is going to be living with another person following the passing of their parent that left them money or a guardian that left them money, there may be a way to set up the trust so that the money can be used to help take care of the minor. With this sort of arrangement, there does need to be a trustee that takes care of the money and that helps to take care of the minor as well until they are legally an adult.
What Is a Trustee for Minor Beneficiary?
A trustee for a minor is an adult that is put in charge of the trust that was put forth for the minor. They are going to be able to help sign off on the use of the money for the minor or on behalf of the minor. They are going to have to keep track of the money that is spent, they are going to have to take the time to really make sure that they are using the money appropriately, and they are going to have to follow the rules and regulations that are set forth by the trust.
Now, the trust may have been set up before the individual passes away. In this case, they will have set up the trust before they passed with the stipulations that they wanted before they passed. If they pass before the trust was set up, the estate can set up a trust and the lawyer that is helping to distribute the estate can help set up the trust and can help set up the stipulations of that trust as it pertains to the minor that is set to inherit.