How Do You Set Up a Trust for a Minor Child?

Setting up a trust for a minor child is easier than you may think. Most parents of minor children should at least consider creating a trust for the benefit of their minor child(ren) as part of their comprehensive estate plan. While a trust is not always necessary, it is worth a discussion with a local estate planning attorney.

Revocable Living Trusts

As you may know, minors cannot manage assets that are gifted to them. Therefore, if you have certain assets you wish to leave to a minor child, you will need to take steps to ensure the asset is properly distributed and held for the benefit of the minor child. One of the most common ways to do this is through a revocable living trust.

A trust can give you control over how the assets are to be handled in the event of your death or incapacity. You can direct when your minor child is to receive the assets, and can even place restrictions on what the assets can be used for (i.e., education, a down payment on a home, etc.). These same restrictions are not always permissible in a standard last will and testament.

When setting up a trust, you appoint a trustee to manage the trust upon your death or incapacity. This successor trustee would be responsible for managing the trust assets for the benefit of your minor child(ren). The successor trustee would also be responsible for ensuring the assets are distributed in a manner consistent with your wishes.

A trust can be an important piece of a parent’s estate plan as it can allow you to distribute assets to your minor child with maximum control. A trust can also be used to hold onto life insurance proceeds for minor children.

UTMA Account

If a trust is too “heavy duty” for your situation, you can also designate assets to be given through a Uniform Transfers to Minors Act account. Money can be held in such an account until the child is 25 years old in the state of Florida.

Minors and Homestead Property

It is also important to note that in Florida if you own homestead property and have minor children, there are restrictions on whether you can devise that property to anyone other than your children (or spouse). A Florida attorney can help guide you on actions you can and cannot take.

Florida Estate Planning Attorney

If you are in Florida and are interested in discussing setting up a trust for a minor child, contact us today. If you are ready to get started on your Florida estate plan, you can do so here.