17 Dec How to Leave an Inheritance for a Minor Child
When you think about your children’s or grandchildren’ s future, you probably picture milestones like birthdays and graduations. You might even imagine them with spouses, careers, and families of their own. And it’s natural to want to leave them an inheritance that will help them fulfill their dreams, whatever those dreams may be.
But what if you pass away before they turn 18?
Since minors can’t legally manage money or property, you can’t just name them in your will and be done with it. Without the right planning, it will be up to the probate court to decide how and when your child receives their inheritance, and who will manage it for them in the meantime.
Here’s how to leave an inheritance for a minor child in a way that actually helps them.
Why You Can’t Leave Assets Directly to a Minor
A minor child is not legally permitted to control inherited property, whether it’s money, real estate, or a family business. So if your child is listed as a direct beneficiary or you don’t have a will when you pass, the court will usually step in and appoint a conservator to manage the inheritance until they are old enough.
However, this process can be expensive, slow, and very stressful for your family. It also means:
- The court decides who manages the money
- The child may receive full control at age 18
- There’s no long-term protection
This is why many people look for a safer, more structured option. It gives them control over who will manage the assets until the beneficiary turns 18. It also gives more control over when and how the child receives their inheritance. For instance, you can set up a trust that gives yearly distributions instead of a lump sum, or set the age of inheritance at 25 instead of 18.
Can You Leave a Business to a Minor?
If you own a family business that you intend to pass on to your child, estate planning is even more important. Just like they can’t directly inherit money or property, a minor child can’t legally inherit a business. However, setting up a trust can help you get around that barrier.
You can establish a trust that names your child as its beneficiary, and fund the trust with your business interests. As long as you’re alive, you retain control. But you’ll need to choose a successor trustee to take over that job if you pass away before your child turns 18.
Using a Trust to Protect Your Child’s Inheritance
If you want to set up a trust for your child, but you don’t know where to start, you should meet with an estate planning lawyer. Trusts have many advantages, and setting one up can help you preserve as much of your wealth as possible for your children or grandchildren.
For instance, a trust allows you to:
- Choose who will manage your assets
- Decide how your assets will be distributed
- Protect your child’s inheritance from being misused
Setting up a trust can give you peace of mind knowing that your child will have what they need, when they need it. So if you’re worried about things like leaving your house to your children, a trust is the way to go.
Lifetime Asset Protection Trusts
One of the most protective options for parents is a lifetime asset protection trust. This type of trust doesn’t only protect your children while they’re young; it can also protect them well into adulthood.
A lifetime protection trust shields their inheritance from anyone who might misuse it, like a step-parent or a future spouse. It also keeps the assets in the trust safe from creditors and lawsuits during your lifetime.
Protect Your Child’s Future with Careful Estate Planning
The one thing most parents don’t like to picture is what will happen if they’re no longer there to guide their young children. That’s why planning for the unexpected is one of the most loving things you can do. You don’t plan for worst-case scenarios because you expect them to happen, you plan because your child deserves stability, no matter what.
At Phelps LaClair, we’ve been providing peace of mind for Arizona families since 1980. If you want to leave an inheritance for a minor child, please give us a call to schedule a free consultation. We’ll talk about your goals and your assets and work out the best plan for you and your family.
Photo by Jessica Rockowitz on Unsplash used with permission under the creative commons license for commercial use 12/17/25.