How Can You Plan for Minor Children’s Inheritance Without Court Intervention?

It’s natural to assume that we’ll be there for our children at least until they become adults. And while that’s the most common scenario, life can throw anyone a surprise. Planning out your minor children’s inheritance now with a Columbia, MD trusts and estates attorney allows you to provide for your children as the one who knows and loves them best, even if you should pass before they reach adulthood. 

How the Courts Deal With Orphaned Minors

When a parent dies and their assets pass straight to a minor child through a will or beneficiary designation, the Maryland’s Orphans’ Court will often step in to appoint a guardian of the property to manage the inheritance. That guardian files reports, may need to post a bond, and must seek approval for many spending decisions. And while the courts are careful and most guardians are reliable, there are no guarantees: someone you do not know will still have control of your children’s inheritance. 

How a Revocable Living Trust Keeps You in Charge

A revocable living trust is an excellent way to keep the courts out of your children’s inheritance. You create the trust now, name yourself as trustee, and then transfer ownership of the bank accounts, investments, real estate, and other assets you want to leave your children. You retain full control of these assets so long as you’re alive, and the trust document spells out exactly what happens after your death.

If you pass away, your successor trustee – someone you trust and name – steps in immediately to manage the assets and follow your written instructions. There’s no need to file anything with the Probate or Orphans’ court.  

Planning Your Trust Details

Inside the trust, you can build the rules. You might, for instance, create a separate share for each child. You can direct the trustee to use the funds for everyday needs, education, or medical care. You set the schedule when your children receive any bulk sums; perhaps one-third is available at age 25, another third at 30, and the balance at 35. Some parents add milestones for money to be paid out, such as finishing college or starting a business. 

You can also make the trust itself the beneficiary of certain accounts, such as life insurance. The funds in those accounts would be added to the trust upon your death. This is often better than directly naming a minor child as a beneficiary, as this can create some complications many families prefer to sidestep. 

Talk to a Columbia, MD Trusts and Estates Attorney

Making arrangements now is never easy, since it means contemplating life for our kids without us there to guide them. But if the unexpected should happen, your children will get the support you want for them with minimal outside interference. 

If you would like to explore how to put such a plan in place for your family, contact Elville and Associates in Columbia, Rockland, or Annapolis, MD to book a consultation. Our mission is “planning that works,” and we stick with you through our Client Care Program to ensure your plan is always up to date, reflects your wishes, and gives you peace of mind. 

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