A properly crafted estate plan should always contain well written distribution provisions when the recipient is a minor. The creator of the estate plan first needs to determine the age of partial or outright distribution. This can be any age but a common guideline, although not required, might be upon the recipient attaining the age of twenty-five years. This does not mean that no distributions are available to the recipient prior to that age. A well written estate plan will establish the age of distribution and rules for the distribution prior to the beneficiary attaining said age. For definition purposes, a beneficiary is considered a minor if they have not yet attained the age of partial or outright distribution.
Starting from this point, a properly written estate plan will proceed to spell out the conditions for “Distributions to Minors”. For instance, the share of the assets granted to that minor will be set aside for that minor in separate account(s) and will be managed by an Administrator nominated by the Decedent when the estate plan is first set up. The Administrator will control those assets and shall distribute those assets for the health, education, welfare, maintenance and support of the minor beneficiary. Should the beneficiary have a court appointed Guardian in place, then said Guardian would approach the Administrator and petition for elements of distribution on behalf of the minor beneficiary. Should the beneficiary not need a Guardian appointed, then the beneficiary themselves shall petition the Administrator for elements of distribution. “Administrator, please take an element of my share and pay this medical bill.”
“Administrator, please take an element of my share and pay my tuition to this educational institution.”
Administrator, please take an element of my share and pay my rent, etc, etc.”
The key point is that the minor does not have full control of their share until they reach the age of partial or outright distribution spelled out in the estate plan.
AmeriEstate Legal Plan, Inc. will always make certain your estate plan contains your specific decisions with respect to age of distribution and Administrative managers for that minor share. AmeriEstate will also insure that your estate plan contains well written criteria for distributions to that minor prior to the age of partial or outright distributions. Finally, AmeriEstate is always available to council and guide the Administrator on the creation and ongoing management of that minor share.