The Importance of Trusts in Wills for Minor Beneficiaries
Parents and grandparents will often want to name minors as beneficiaries in their will. It is natural that you will want to protect and provide for these younger members of the family in the event that something happens. It makes plenty of sense to name them as beneficiaries. However, you need to be careful about how you do this and you need to put the right elements in place so you can be sure that they actually receive the money. In the case of minors, this is not always what happens. One of the best ways of doing this is by establishing a minor beneficiary trust.
What Happens To Kids If You Die Without A Will?
In Canada, minors will not be able to inherit money or property. It needs to be held in a trust for the child until he or she reaches the age of majority. Having a good will with a minor beneficiary trust is very important, and having stipulations in place can ensure that the money is used correctly. Those who do not have wills in Alberta will have money for their child beneficiaries held by the Office of the Public Trustee. The children will receive the money and interest when they are 18 years old (in Alberta). Minor beneficiary trusts allow you to control at what age your children will come into both the income from your estate and the capital itself.
Having Control of The Minor Beneficiary Trust
When you have a will with a minority beneficiary trust, you will be able to determine the actual parameters of the trust for the child, and you can even decide to choose an age that’s greater than 18 or 19 before the child can receive the money. In addition, the parents who create this will and trust will be able to determine who will look after the money in the trust in the meantime. Additionally, through the minor beneficiary trust, you can allow some of the funds from the trust to be used to pay for certain things such as living expenses, educational costs, medical bills, and more.
It is not possible for the name of a minor to be added to a real estate title. Parents and grandparents who want to transfer property will need to ensure that the property is held by a minor beneficiary trust by a trustee they name in the will.
In the event that personal items are transferred to children, the trustee or executor of the will holds onto them. However, in the case of certain items, the trustee could decide to let the child have them at an earlier age, so long as it would be beneficial to the child. For example, the child would not be able to receive the classic car he or she inherited until they are the age of majority. However, if they received a collection of books, they may be able to receive these earlier. Most of the time, it is up to the discretion and the common sense of the trustee. If you have specific concerns, you can add specific terms to the minor beneficiary trust.
Peace of Mind For Your Children
A minor beneficiary trust in your will is a great idea for parents who want to make sure that their children are taken care of after they pass away. It gives them peace of mind knowing that the property will go to the right place. However, you do need to make sure that you set up the trust properly. It’s a good idea to work with an experienced wills & estates lawyer who will be able to help you. Additionally, when choosing someone to act as trustee in your minor beneficiary trust, it is important for the parents and grandparents to choose someone who truly has their children’s best interests at heart. Even though the trust should be iron clad and there should be no way that a trustee can get money from it, there’s always a potential for abusing the system unless you have a lawyer make sure that it is safe. Learn more about other aspects of a will after you have had babies / children.