Virtual Representation Helps To Avoid Costly Guardian Ad Litem Fees

In almost every state, a minor who has a financial interest in a matter must be represented by a court appointed guardian rather than the parents. This requirement can lead to many unwanted fees and problems, particularly when a trust is involved, since the trustee would be unable to give notice or receive legally binding releases.

    However, the Uniform Trust Code has solved part of the issue by providing virtual representation which allows some competent adults to act on the behalf of minors, those without capacity, and the unascertained. The requirements vary but usually involve a parent being able to bind their children if there is no substantial conflict of interest. Any trust that has the potential to face a guardianship problem may include virtual representation provisions of greater depth than state law and should always be included to save much future expense and uncertainty.

See Ruth Mattson, Virtual Representation for Minor Children and Other Beneficiaries, Wealth Management, May 13, 2015.