Logo

The Oakley Law Group

Preserving Your Life's Work for Your Family's Future

(818) 937-2335
Attend A Free Webinar
  • Home
  • Who We Are
    • About Our Firm
    • Attorney and Staff Profiles
    • Speaker Connection
  • How We Can Help
    • Business Owners & Asset Protection
    • Elder Law and Medi-Cal Services
    • Estate Planning
    • Family-Owned Businesses
    • Incapacity Planning and Caregiver Support
    • IRA & Retirement Planning
    • LGBTQ Estate Planning
    • Minor Children & Young Adult Planning
    • Special Needs Planning
    • Trust Administration & Probate
    • Wills & Trusts
  • Seminars
  • Resources
    • Elder Law Reports
    • Estate and Gift Tax Figures
    • Estate Planning Resources
      • Definitions
      • Estate Planning Checkup
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning
      • Incapacity Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medi-Cal Planning
      • Probate
      • Taxes on Inheritances
      • Trust Administration & Probate
    • Newsletters
    • Special Needs Resources
    • Reports
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
  • Blog
  • Contact Us
How Do You Include a Minor in Your Estate Plan?
arrow_downward

How Do You Include a Minor in Your Estate Plan?

February 14, 2023 by Steven Oakley

testamentary trust There are some inheritance planning situations that can appear to be challenging on the surface, but if you speak with an attorney, you will inevitably find a solution.

Providing for a minor child would fit into this category, and we will look at two potential courses of action in this post.

Testamentary Trust

A testamentary trust can be simply defined as a trust that is embedded within a will. If you want to provide for a minor child in your estate plan, you could include a testamentary trust in your will.

The trust would not exist while you are living, so you could change the terms at any time. After your passing, the executor that you name in the will would establish a testamentary trust and fund it in accordance with your stated wishes.

Parents will sometimes create testamentary trusts that would be funded with life insurance proceeds. The trustee would be the initial beneficiary of the policy, and the proceeds would be directed into the trust for the benefit of the child.

When can the child directly access the resources? You would answer this question when you establish the trust. They could receive the entire balance in one lump sum when they reach a certain age, or you could arrange for the trustee to distribute limited assets over an extended period of time.

Custodial Accounts

The Uniform Transfers to Minors Act (UTMA) and the Uniform Gifts to Minors Act (UGMA) are two legislative measures that allow for the establishment of custodial accounts for minors.

You can establish and fund either type of account and name a minor as the beneficiary, and they would be able to access the funds when they reach the age of majority.

A UGMA account can only hold the types of asset that would be in an individual retirement account, which would boil down to mutual funds, stocks, cash, and bonds. The UTMA account can hold a broader class of assets, including real estate, art, and other collectibles.

The age at which a minor will take control of the account varies depending on the state and the type of custodial account. In California, it is 18 for both types of accounts.

However, the person that establishes the account for the benefit of a minor can stipulate a different termination age in some states, and California is one of them. You can set a different termination age if you choose to do so, but 25 is the maximum.

Blogs!

We know that people are more likely to take action for the benefit of their loved ones when they understand why estate planning is so important. As a response, we go the extra mile to provide educational resources on this website.

This blog is updated on an ongoing basis, and there are other resources that you can tap into free of charge. One of them is our estate planning worksheet, and you should definitely take the time to go through it if you would like to build on your knowledge.

The written materials are very useful, and we also go the extra mile in another way. We have recorded an on-demand webinar, and you will learn a lot if you view it. There is no charge, and you can visit this page to gain access.

Need Help Now?

If you have learned enough to know that you should work with a Burbank, CA estate planning attorney to put a plan in place, there is no time like the present.

Each situation is unique, and there is no one-size-fits-all estate plan that is right for everyone. We can gain an understanding of your objectives and your family dynamic and help you establish a plan that ideally suits your needs.

You can set the wheels in motion right now if you call us at 818-937-2335, and you can use our contact form if you would prefer to send us a message.

 

 

  • Author
  • Recent Posts
Steven Oakley
Steven Oakley
Managing Attorney at The Oakley Law Group
Steve is a father of five, a member of the Jonathan Club, veteran of the United States Army and spends his free time dabbling in aviation and supporting several non-profit organizations including, Freemasons of California, Scottish Rite Language Centers, the Burbank Noon Kiwanis Club, Quake Safe Seniors, UCLA Alumni Scholarships, and the Shriners’ Hospitals for Children.
Steven Oakley
Latest posts by Steven Oakley (see all)
  • There Is No One-Size-Fits-All Estate Plan - March 24, 2023
  • Top 5 Reasons to Use a Living Trust - March 22, 2023
  • Can I Give Inheritances While I’m Living to Avoid Estate Taxes? - February 17, 2023

Primary Sidebar

SEARCH

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There’s a lot that goes into setting up a comprehensive estate plan, but with our complimentary worksheet, you’ll be one step closer to getting yourself and your family on the path to a secure and happy future.

Texting Permission

The Oakley Law Group

2600 West Olive Avenue, 5th Floor
Burbank, CA 91505
Phone: (818) 937-2335
Fax: (818) 450-3886

Office Hours

Monday to Friday : 9:00am to 6:00pm PST

Blog Subscription

Subscribe to our blog to get the latest estate planning news from the attorneys at The Oakley Law Group.

Texting Permission

Footer

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube
Logo
ATTORNEY ADVERTISING. PAST RESULTS DO NOT GUARANTEE FUTURE OUTCOMES

© 2022 The Oakley Law Group | © 2022 American Academy of Estate Planning Attorneys, Inc. Disclaimer | Privacy Policy