• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sinclair Prosser Gasior

Annapolis Estate Planning Attorneys

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Call Now: (410) 573-4818

Attend a Free Workshop Trustee School

  • Home
  • About Our Firm
    • About Our Firm
    • Founding Attorneys
    • Meet Our Team
  • Services
    • Annapolis, MD Asset Protection and Business Planning
    • Estate and Gift Tax Figures
    • Annapolis, MD Elder Law & Medicaid Services
    • Annapolis, MD Trust Administration & Probate
    • Family-Owned Businesses & Farms
    • Annapolis, MD Incapacity Planning
    • Annapolis, MD LGBTQ Estate Planning
    • Annapolis, MD Pet Planning
    • SECURE Act
    • Annapolis, MD Special Needs Planning
    • Estate Planning for Young Families
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Definitions
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Asset Protection Planning
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Power of Attorney
      • Trust Administration & Probate
    • Is Your Estate Plan Outdated?
    • Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Trust Administration
      • Estate Planning for Niches
    • Top 10 Estate Planning Techniques
    • Newsletters
  • COMMUNITIES WE SERVE
    • Anne Arundel County
      • Annapolis
      • Crownsville
      • Davidsonville
      • Highland Beach
      • Millersville
    • Baltimore County
    • Calvert County
      • Dunkirk
      • Huntingtown
      • Owings
    • Charles County
      • Charlotte Hall
      • Waldorf
    • Howard County
    • Prince George County
      • Bowie
      • Fort Washington
      • Glenn Dale
    • Queen Anne’s County
      • Grasonville
      • Queenstown
      • Stevensville
    • St. Mary’s County
      • Charlotte Hall
      • Leonardtown
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact Us
  • Make A Payment
  • Client Portal
Home / Planning for Minor Children / What if Money is Left to a Minor?

What if Money is Left to a Minor?

March 1, 2018 by Colleen Sinclair Prosser, Estate Planning Attorney

“What if Money is Left to a Minor?” by Attorney Colleen Sinclair Prosser (Audio)

The attorneys at Sinclair Prosser Gasior provide assistance with structuring an inheritance you leave behind so heirs or beneficiaries can inherit as quickly as possible and so the inheritance is as protected as possible. There are many circumstances in which your efforts to leave money to a loved one can be complicated by legal rules that are in place. For example, if you leave money to someone who is disabled and who is collecting means-tested government benefits like Medicaid, you could end up putting your disabled loved one’s benefits at risk unless you use a special needs trust.

One of the many situations where you will need to make specific plans for the appropriate structure of an inheritance is when you are leaving money to someone who is under the age of 18. A person who is under age 18 is considered a minor and is not legally allowed to inherit directly and begin managing the money that is left behind. It’s important if you are planning to leave money to a child that you understand exactly what happens to this money after you pass on. You should also work with an attorney to structure the inheritance in an appropriate way so you control what happens to the inheritance rather than just allowing default laws to dictate what happens to the money or property.

What Happens When Money is Left to a Minor?

The outcome of leaving money to a minor will vary depending upon the mechanism by which the money was provided to a child.

If money is left to a child in a will, the court will need to appoint a guardian to manage funds. The guardian may not be the person you would have preferred to be put in charge of caring for the child’s inheritance. The involvement of the court in choosing a guardian and monitoring spending of the child’s inheritance can be burdensome to families.  The guardian will manage money and property on behalf of the child until the child is 18, at which time the child will receive the inheritance and take control over its management. This can be a big problem if an inexperienced 18-year-old is just given a large amount of money without any strings attached or limitations imposed.

Some people will leave money to a minor through the Uniform Transfers to Minors Act. This Act makes it easier for you to specify who should manage an inheritance and can allow you to delay having a child receive an inheritance until the child is age 21. Making a transfer under UTMA is a relatively simple process that the attorneys at Sinclair Prosser Gasior can help you with when you make your estate plan.

You also have the option of creating a trust to provide an inheritance to a minor. This is more of a process with additional legal requirements compared with transferring assets under the Uniform Transfers to Minors Act. However, creating a trust will give you the maximum amount of control. You can specify a trustee who will have a fiduciary duty to manage money for the best interests of the child and you can set specific conditions or limitations on what the money is to be used for and when the child will take control over managing an inheritance.

Many families find that the creation of a trust is the best way to provide an inheritance for a child, but you should work with an attorney to determine if this is actually the best course of action for you or not.

The attorneys at Sinclair Prosser Gasior will work closely with you to determine how best to leave an inheritance to a child who is under the age of 18. We can help you to evaluate the pros and cons of different options such as using a last will and testament to transfer assets, transferring assets under the Uniform Transfers to Minors Act, or using a trust to facilitate the transfer of assets. We can also help you to implement your plans for the transfer of assets by using the most appropriate legal tools available to you.

Reach out to us today so we can get your plans in place now in case something happens to you in the future.

 

 

 

  • Author
  • Recent Posts
Colleen Sinclair Prosser, Estate Planning Attorney
Colleen Sinclair Prosser offers years of experience in estate preservation and transfer. A strong proponent of the living trust, she also focuses on wills, powers of attorney, living wills, probate, trust administration, prenuptial agreements, nursing home planning, and special needs planning.
Latest posts by Colleen Sinclair Prosser, Estate Planning Attorney (see all)
  • 25 Years with WNAV - June 22, 2022
  • Capital Gains Taxes and Trust Assets - April 21, 2022
  • Estate Planning Mistakes - March 29, 2022

Filed Under: Planning for Minor Children Tagged With: Legacy Planning

Other Articles You May Find Useful

Estate Planning for Young Adults
happy couple with child
Estate Planning for Young Families
Sinclair Prosser Gasior
Do Young People Need Estate Planning? (Audio)
Sinclair Prosser Gasior
Is Estate Planning Important for Young Adults?
Sinclair Prosser Gasior
Is Estate Planning Important for Young Adults?
Sinclair Prosser Gasior
Difficult Decisions

About Colleen Sinclair Prosser, Estate Planning Attorney

Colleen Sinclair Prosser offers years of experience in estate preservation and transfer. A strong proponent of the living trust, she also focuses on wills, powers of attorney, living wills, probate, trust administration, prenuptial agreements, nursing home planning, and special needs planning.

Primary Sidebar

Download our free estate planning worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Testimonials

5 Stars
Client Review
September 3, 2020
    

We initiated estate planning following a presentation by Sinclair Prosser Attorney Jon Gasior. We were so impressed, we contracted with them to complete our estate planning. Subsequently, we assembled information on our assets and Sinclair Prosser Gasior did the rest. Correspondence was communicated to our financial institutions and the estate was established. We were very pleased with the courteous manner of the Sinclair Prosser Gasior staff. However, it was their professionalism that made us satisfied we chose this firm to handle our estate. We have nothing but praise for Sinclair Prosser Gasior .

default image
– Walter K.

Blog Subscription

Sign up for our blog to receive all of our latest estate planning news and updates!
  • This field is for validation purposes and should be left unchanged.

ANNAPOLIS

900 Bestgate Road
Suite 103, Annapolis, Maryland 21401
Phone: (410) 573-4818
Fax: (410) 573-2802

BOWIE

4201 Mitchellville Road
Suite 403, Bowie, MD 20716
Phone: (301) 970-8080
Fax: (410) 573-2802

MILLERSVILLE

1520 Jabez Run Rd
Suite 300, Millersville, Maryland 21108
Phone: (410) 573-4818
Fax: (410) 573-2802

WALDORF

Hamilton Centre II
3261 Old Washington Road, Suite 2020 Waldorf, MD 20602
Phone: 800-366-4615

Map

map for office

Footer

footer logo
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

The information on this Maryland Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

© 2023 American Academy of Estate Planning Attorneys| Privacy Policy | Contact Us | Disclaimer | Site Map