How To Stay Out Of Trouble When Your Children Inherit Money But You Don’t
Everyone worries about money, especially in today’s economy, but there is no stress quite like what the parents of minor children feel when there is only enough money in the family bank account to cover this month’s bills, if there is even that much. Almost every parent dreams of setting up a savings account for their children’s benefit. The parents who have enough money to start a college savings fund for their children when the children are born are the lucky few. Some of us might inherit money from family members, and if it happens before our children reach adulthood, we are determined to save it for our children’s future. It is also possible for children to inherit property independently of their parents. Although this situation is less common than other ways that extended family members may make financial decisions for the benefit of young relatives, it has its own set of rules. If your children are minors, and they recently inherited property from a deceased family member, contact an Orlando estate planning lawyer.
Why and How Do Minors Inherit Money?
The testator of a will has the right to leave money to anyone he or she chooses. A testator might leave money to his grandchildren instead of or in addition to leaving it to his children because he is worried that, if he leaves his entire estate to his children, the money will run out before the grandchildren are old enough to have a say in how to spend it, so they will get more benefit from it if they inherit it directly. Other times, the testator leaves property to the youngest generation on principle, to acknowledge a strong personal connection between the testator and the young beneficiaries.
Despite this, the law prohibits minors from having direct access to their inherited property. If that were not the case, every kid whose grandmother listed him as a beneficiary of her will would blow the money on Pokemon cards and Robux.
Complying With Laws About Property Inherited by Minors
When a minor inherits property, the court must appoint a guardian of the property of the minor. This person must report to the court how the money is being used, whether the guardian is spending it on the young beneficiary’s expenses or simply letting it accrue interest in a savings account.
Yes, There Is a Simpler Way
If you want to leave money directly to your grandchildren, and it will be years before they reach adulthood, there are more straightforward ways to do it than simply listing them as beneficiaries of your will. It is better to establish a trust while you are alive and to name your grandchildren as beneficiaries of the trust. This way, by writing the trust instrument, you have more control over how the money gets spent.
Contact Gierach and Gierach About Spoiling Your Grandchildren Now and Later
An estate planning lawyer can help you build an estate plan that is generous toward your grandchildren. Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.
Source:
jud12.flcourts.org/About/Divisions/Probate-Guardianship/Guardianship-Basics#:~:text=Guardian%20of%20a%20Minor,property%20damage%20or%20wrongful%20death.
