Six Ways to Avoid Accidental Inheritance by Minors

The problem of minors being designated as the recipient of inherited property can happen by accident. While a court can fix this type of accidental inheritance problem through a guardian or by delaying the property distribution, this problem can be avoided by using estate planning tools to prevent an accidental inheritance of property by a minor. Here are six ways to avoid this type of problem:

1. Include in the will that the executor can distribute the property left to minor to a custodian instead.
2. Give the executor the ability to use the funds left to the minor for the benefit of the minor.
3. Create a contingent trust that is effective only if a minor is left property.
4. Don’t name current minors as beneficiaries for any accounts.
5. Remember to name a successor owner and contingent successor owner, if allowed, for all college savings accounts.
6. Create intervivos trusts with minors as the beneficiaries.

See Sandra W. Reed, Estate Planning and Minors, YourGlennRoseTX, Aug. 7, 2014.