All states set their own limits on the value of property left to a minor child. As a general rule however, property with a value of over $2,000 should be managed by an adult until the minor child turns 18.
There are three ways to provide for your minor child when leaving them property; Uniform Transfers to Minors Act (UTMA), a Child’s Trust or no Property Manager named.
Depending on the valued amount of the property and the age and/or maturity of the minor will help determine the best property management option to use.
Generally speaking, if the property is valued at less than $75,000 the UTMA is a good option, with the minor child receiving control of the inheritance between the ages of 18-25. If the value is above $75,000, or the maturity of the minor may be a question, it might be beneficial to look into a Child’s Trust. While this option is substantially more involved, the benefits may certainly outweigh the responsibilities incurred by the named Property Manager. Additionally, the full distribution can be managed up to the age 35 if desired. Finally, if no Property Manager is designated, the Probate Court can determine if they want to appointment a guardian to manage the property, regardless of what your personal desires were.
Creating a Will can be a complicated process. If you need assistance, please visit our Blog section where you can find a list of Attorneys by State.
Whether your Will is already completed, or you’re having one prepared, let Vault Keepers assist you by holding your Original Will in a fire/waterproof safe until the time it is needed. Visit us today at VaultKeepers.net.