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Things That May Happen If the Beneficiary Is a Minor


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According to one study, about 40% of parents plan on leaving an inheritance behind for their children.

But what happens if a minor is a beneficiary to that inheritance? There are a few different ways to decide how that money gets distributed.

Keep reading to find out about the inheritance laws for minors!

Depends on Amount

In some cases, the amount of the money will determine how the minor can receive the inheritance. This law will vary by state, so you should check there first.

Also, in some states, money can be left to a minor if it’s put into a 529 account. But it should be in the minor’s name.

Things can get tricky if the minor lives in a state that doesn’t allow any inheritance money or property to be passed through any special account.

Judge Decides

In some cases, the judge will decide how much the minor will be able to get. The judge normally steps in if the will does not have specific instructions as to who the guardian of the minor will be.

Then, they’ll hold a trial to see who is best suited to take guardianship of the minor. Whoever takes guardianship will also be in charge of allocating the inheritance.


In an LLC beneficiary being left to a minor, the age of the minor will also be factored in.

Even if the child is a legal age to be a beneficiary, the child will have to reach a certain maturity to be able to manage a large sum of money. That’s why some parents put the inheritance in a trust that the child can’t touch until they’re a certain age.

That way, even if a twelve-year-old is still left money, it might be put into a trust where they can’t touch it until they’re thirty years old.

Direct Gift

Some parents also leave the money as a direct gift to the minor beneficiary. However, the minor still won’t be able to take control over it until they’re an adult.

In a case where the living trust wasn’t drafted properly, then the state law will determine who should receive the estate or inheritance and in what amount. Normally, the closest family member will receive it if there are no children or spouses of the deceased.

If you’re going to be leaving money to a minor, make sure that you spell everything out in your will to be sure that the state honors your wishes.

Learn More About What Happens if a Minor is a Beneficiary

These are only a few possibilities as to what happens if a minor is a beneficiary, but there are many other factors to look at.

We know that dealing with inheritances and trusts is already difficult enough, which is why we’re here to help guide you to the right place.

If you enjoyed this article, make sure that you explore our website to find more articles just like this one!




Bart van Leeuwen Working it Out Pat Bagley Monte Wolverton John Branch One Big Happy