Leaving an inheritance to a child is a common desire for many parents and grandparents, stemming from a wish to provide financial security for the next generation. However, if you designate a minor as a direct beneficiary on an insurance policy, retirement account, or in a simple Will without specific trust provisions, you may inadvertently trigger a complex legal process.
In the state of Florida, minors cannot legally own or control significant property directly. If a child under 18 receives an inheritance exceeding a specific amount, the court must step in to oversee the management of those funds. This often results in court intervention when a minor inherits assets in Florida, a process that can be costly, time-consuming, and intrusive for your surviving family members.
The costs associated with this process are significant. Attorney fees for setting up the guardianship, ongoing court filing fees, and the potential requirement for a surety bond all come out of the minor’s inheritance.
Furthermore, the assets are generally restricted to conservative investments approved by Florida statutes, which may not yield the best growth over time. We can assist parents and grandparents with estate planning to avoid guardianships for minor beneficiaries.
One of the most concerning aspects of court-supervised guardianships is what happens when the supervision ends. Under Florida law, when the minor reaches the age of majority—18 years old—the guardianship terminates, and the remaining funds must be turned over to them directly. For many young adults, receiving a large lump sum of unrestricted cash or other assets at 18 is a recipe for disaster. They may lack the financial maturity to manage the wealth, making them vulnerable to bad investments, predatory lending, or reckless spending. This outcome is rarely what the benefactor intended when they left the assets.
Proper planning can prevent this scenario, but you need to know your options. While the court’s jurisdiction typically ends at 18, there may be limited legal avenues to encourage financial literacy or structure the payout differently if planned for prior to the distribution. We advise clients on the realities of minor inheritance court processes and help families avoid this guardianship process.
The best way to handle a minor’s inheritance is to bypass the need for a guardianship entirely through proactive estate planning. Tools such as the Florida Uniform Transfers to Minors Act (UTMA) allow for a custodian to manage smaller amounts of money without court oversight, though this also mandates distribution at age 21 (or 25 in some cases). For most families a revocable living trust is often the superior choice. A trust allows you to appoint a trustee of your choosing to manage the assets according to your specific instructions, avoiding the need for a judge to approve every expense.
If you are already dealing with an unplanned inheritance, we can explore whether the amount qualifies for a simplified procedure or if a full guardianship is strictly required. Navigating minor asset inheritance laws in Florida requires a strategic approach to determine the most cost-effective path forward. We help you analyze the value of the assets and the specific family dynamics to choose the right legal vehicle, ensuring the child’s financial future is protected without unnecessary government interference.
Seeing a child’s inheritance consumed by legal fees or mismanaged due to a lack of planning is a tragedy that is largely preventable. Whether you are currently facing a guardianship proceeding or looking to structure your estate to avoid one, an estate planning attorney is essential.
Do not let the court system dictate the financial future of your children or grandchildren. Contact Veliz & Associates to schedule a consultation, and let us help you secure and protect your family’s assets.
We evaluate your case and determine how we might be able to help.
We will meet with you to discuss your next options and lay out a plan.
Our team guides you throughout the process so you feel confident about your choices.
(305) 250-9917