You love your children, and making sure they're cared for—no matter what—will always be a top priority. Sometimes, grandparents, aunts, uncles, and other loved ones want to provide for them too. But even with the best intentions, leaving money or property to minors can lead to serious legal and financial complications if not planned properly.
Here's what every parent and loved one should know to make sure their children are truly protected—not burdened—with their inheritance.
Common Mistake: Using a Simple Will to Leave Assets to Minor Children
A lot of parents think a simple will is enough to cover everything. It's where you can name a guardian for your kids, so it feels like a solid plan. But what many overlook is how the inheritance itself will actually be handled.
A simple will typically gives the inheritance to the child in one lump sum as soon as they legally become an adult. That means:
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No gradual payouts or age-based milestones
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No built-in protections or spending controls
Many parents also assume the named guardian can automatically manage the money until the child is older. Unfortunately, that's not how the law works. The inheritance legally belongs to the child, not the guardian.
Because minors cannot legally hold more than a small amount of money, the court has to appoint someone (a conservator) to manage the funds until the child turns 18 (or 21 in some states). Once that birthday hits, everything left gets handed over to them in one go. No strings attached.
The responsibilities of caring for your children and managing their inheritance are separate and distinct. Sometimes it's the same person, sometimes different, depending on the court's decision.
Once the court is involved, the conservator must:
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Report how the funds are spent
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Obtain court approval for certain expenses
This process can create delays, additional costs, and ongoing oversight, which many families find burdensome.
Common Mistake: Failing to Avoid Court Oversight of Your Children's Inheritance
A court conservatorship is often slow, expensive, and rigid.
Nonordinary expenses—anything beyond basic living costs, school, or medical needs—usually require formal court approval. This means:
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Extra paperwork and time
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Additional legal fees
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Court fees taken directly from the inheritance
Because courts follow the law consistently, they cannot automatically accommodate your child's unique needs. For example: specialized tutoring, therapy, or extra educational programs would require separate approval.
All these steps reduce the inheritance and create extra stress for both the child and the family.
Correct Action: Using a Trust to Protect the Child and Their Inheritance
The smarter, more secure option is a trust.
Testamentary Trust
A testamentary trust is created through your will. It allows you to:
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Name someone to manage your child's inheritance instead of the court
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Decide how and when your children will receive their inheritance
However, testamentary trusts only take effect after probate, which can be lengthy, public, and costly.
Revocable Living Trust
A revocable living trust is often the better solution. Unlike a testamentary trust, it:
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Takes effect immediately when created
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Works if you pass away or are unable to manage your own affairs
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Keeps everything private, with no court involvement
With a living trust, you can:
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Choose exact ages or milestones for inheritance distributions, such as graduating college or buying a first home
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Provide for each child's specific needs and circumstances
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Protect the inheritance from creditors, divorces, or poor spending decisions
A living trust ensures your children receive not just financial support, but long-term protection. It's a way to continue caring for them even when you're no longer able.
Final Thoughts
Estate planning isn't just about documents—it's about protecting your loved ones. A well-structured trust ensures your children are supported exactly how you intend, not how the court decides.
At Sheil Law Firm, we help families create customized estate plans that provide peace of mind. Whether you're starting fresh or updating an existing plan, we guide you every step of the way to make sure your children's future is secure.
