How Probate Court Distributes Assets to a Minor
If the worst happens to you, and you leave behind minor children, you’re probably wondering how they will receive their inheritance. Will the court give it all to them at once? Who decides when they get the money?
How you plan ahead – using either a will or a trust – will determine how your assets will be distributed to your minor children.
If you have a will
Your will can appoint someone to be guardian over your children, which means that person will take care of them in their day-to-day activities. However, this person won’t automatically be given the right to handle your assets that are left behind to take care of your children’s needs.
Instead, the probate court will protect that money in a closed account that can only be accessed with a court order. This means that your children’s guardian will have to petition the court to get the money in this account to pay for the things your children will need, like school, clothes, and food.
Then, as soon as your child turns 18, the money is given to them outright, without any restrictions.
If you have a trust
A trust means you won’t have to work with the probate court at all. You can state in your trust who you want to be in charge of your assets and how they can use your money to take care of your minor children. You can also set parameters on when your children can access money later in life – you can decide if they should receive it all at 18 years old, or when they’re 25, 30, and beyond.
In summary, if you have a will – or no estate plan documents at all – the court will place your assets in an account for the benefit of your minor children, however these funds can only be accessed when your guardian petitions the court. When you have a trust, your estate plan will provide guidance for your guardian and financial trustee, and the probate court won’t have any involvement.
Are you curious about what you can do to protect your family? Contact Striegle Law and receive personalized estate planning guidance.