Drafting an estate plan when you have a minor child calls for additional steps. You need to name a guardian for them and structure your estate plan in a way that allows your child to access their inheritance.
Here is what to know to make informed decisions:
Choosing a guardian
Using your will, name a guardian who will take care of your child if you die before they become an adult. You need to name a guardian of the person and a guardian for the estate bequeathed to your child.
The former party will make decisions regarding the child’s daily care, health, safety and education, whereas the latter will have custody and control of the estate, managing your child’s finances. You can name two parties, or one person can serve as both.
When the time comes, the court will appoint the nominated guardian if they believe they are suitable and competent. It’s vital to know a few qualities to look for in a guardian to increase the chances of approval from the court.
Note that Virginia law allows a minor who is at least 14 years old to nominate their guardian of the person or for the estate. This means they may nominate someone other than the one named by their parent in the will. The court may then approve the nomination.
Structuring asset management
Naming your minor child as a beneficiary in your will is crucial. However, if you die before they become an adult, they cannot legally manage or control significant property directly until they turn 18. Therefore, it’s important to structure your estate plan in a way that allows your child to be taken care of while preventing improper use of inheritance.
Creating an estate plan when you have a minor requires careful consideration. Obtain more information to protect your child.
