When you are minor and are named as a beneficiary in a will or trust, the inheritance money you receive will typically be placed in a trust. This is done to ensure that the money is managed and used responsibly until you reach 18, the age of majority, in Florida and 21 in other states.
Trustee appointed to manage the trust
A trustee is appointed to manage the trust and ensures the money is used for your benefit. The trustee is usually an adult or professional, such as a lawyer or financial advisor, who is responsible for managing the trust and ensuring that the money is used in accordance with the terms of the trust.
The trustee can use the money to pay for your education, healthcare, and other expenses as determined by the terms of the trust. The funds can also be invested to grow over time. The trustee will ensure that the money is invested safely and securely so that you will have a good amount of money when you reach the age of majority.
When you reach 18, you receive the remaining funds from the trust. At this point, you will be able to use the money as you see fit if it is legal and ethical.
Trusts and supervised guardianships
It’s important to note that in estate planning, trusts can also be set up for other purposes like providing support for the beneficiary’s special needs or financial support for the beneficiaries in the lifetime of the grantor.
It’s also important to note that in some cases, the inheritance money may be placed in a court-supervised guardianship rather than a trust. This is usually done when there is a concern that the money would not be used responsibly if left in the hands of the minor or their legal guardian. In this case, a court-appointed guardian will manage the money and use it for the benefit of the minor.
The future provided for
Inheriting money as a minor can be a complex process. Still, with the right planning and guidance, the money can be used to benefit you and provide for your future. It’s essential to have a good understanding of the terms of the trust and the responsibilities of the trustee so that you can make informed decisions about how the money is used. And it’s always a good idea to consult with a legal expert or financial advisor to ensure your inheritance money is managed and used responsibly.