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Can You Name a Minor as a Beneficiary in Your Florida Estate Plan?

Minors can be named as a beneficiary in your estate plan. However, they cannot legally own or take possession of the property until they reach the age of majority.  The age of majority in Florida is eighteen (18) years of age.

When property is left to a minor beneficiary, for example through joint ownership of property or a payable-on-death account, the minor will not have the legal authority to take control of the property. This also applies to inheritances received through a Florida Last Will and Testament or from a Florida Intestate Estate. You should seek an experienced and knowledgeable Florida estate planning and probate attorney to assist you in determining what course of action to implement.

If there is no Trust set up for the inheritance that is left to the minor child, a Florida Guardianship of Property will be required. The Florida Guardian is appointed by the court and would be granted authority to manage the inheritance for the minor until such time as the minor reaches the age of majority.  Typically, when a Florida Guardianship is set up for a minor child, the funds are placed in a restricted depository, and require a specific Court Order for the disbursement of any of those funds.

If a Florida Probate Estate has been opened, the court-appointed Personal Representative can file a petition requesting that a guardian be appointed for the minor child. If there is no Florida Probate Estate, for instance in the event the minor is named as the beneficiary of a life insurance policy or retirement account, then an interested adult can file the petition, such as a parent or legal guardian.

A judge will then decide who to appoint as the minor’s guardian, usually after hearing testimony from all interested persons. Typically, the child’s parent is chosen unless both parents are deceased or otherwise determined to be inappropriate.

Another option to avoid the requirement of a Florida Guardianship when naming a minor as a beneficiary, is to set up a Trust. A Trust would allow the money to be held and managed by a Trustee until such time as the child reaches the age of majority.  One advantage of a Trust is that you can set up for the disbursement to the beneficiary to occur at specific ages, events, or intervals. For example, a portion can be distributed at twenty-one (21) years of age, another portion can be distributed at twenty-five (25) of age, and the remaining funds to be distributed at thirty (30) years of age. You can also set up the Trust to pay for college expenses, housing, or tuition.

You may also want to consider a UTMA Account. This type of account is a custodial account created for the benefit of a minor that provides for the management, use, and disposition of property gifted or otherwise transferred to a child.  Generally, to set up an UTMA Account the donor simply chooses a custodian and requests that the bank or financial adviser establish an account in the name of “(Name of Custodian), as custodian for (Name of Minor) under the Florida Uniform Transfers to Minors Act”.  However, there are some disadvantages to UTMA accounts. You should seek the advice of an experience and knowledgeable Florida Probate Attorney to assist you in determining what options would be best for your situation.

To discuss this matter, or other Guardianship and Probate Administration matters please contact Ann Marie Gilden, Esquire of Ann Marie Giordano Gilden, P.A. at (407) 732-7620, and visit my website at www.annmariegildenlaw.com.

This information is provided only as educational materials, and does not constitute the providing of legal advice, and does not create any attorney client relationship.