If you’re a parent with minor children, one of the most important parts of estate planning is ensuring they are protected financially if something happens to you. In Ohio, minor children (those under 18) cannot directly inherit property or manage substantial assets. So, what happens if your estate passes to them? The answer depends on whether you plan using a will or a trust. Here’s what you need to know to make the best choice for your family.

Scenario 1: If You Use a Will

A will outlines how your assets should be distributed upon your death. However, if your estate passes to minor children, Ohio law requires several steps to ensure the assets are properly managed until the children turn 18.

How It Works with a Will

1. Probate Court Involvement
   Your estate will go through probate, a court-supervised process to settle your affairs. If your will names your children as beneficiaries, the probate court will step in to appoint a guardian of the estate to manage their inheritance.
2. Guardian of the Estate
   The guardian of the estate (who may or may not be the same as the guardian of the person) is responsible for managing the child’s inheritance. This individual must report to the court regularly, which can involve:
   • Filing an inventory of assets.
   • Submitting annual accountings.
   • Seeking court approval for major expenses.
3. Access to Funds
   The funds can only be used for the child’s benefit, such as education, healthcare, or living expenses, and the guardian must justify these expenses to the court.
4. Full Distribution at Age 18
   Once your child turns 18, they gain full, unrestricted access to their inheritance. This means they receive a lump sum, regardless of their financial maturity or circumstances.

Potential Issues with Using a Will

• Lack of Financial Protection: Most 18-year-olds lack the financial skills to responsibly manage a large inheritance.
• Court Oversight Costs: The probate process and guardianship management can be expensive and time-consuming.
• Loss of Privacy: Probate is a public process, so details about your estate and your children’s inheritance become part of the public record.

Scenario 2: If You Use a Trust

A revocable living trust provides a much more flexible and controlled way to manage your assets for the benefit of minor children. Unlike a will, a trust avoids probate and allows you to set specific terms for how and when your children receive their inheritance.

How It Works with a Trust

1. Trustee Management
   Instead of a court-appointed guardian, a trustee (someone you choose) manages the trust assets for your children’s benefit. This person has the authority to use the funds for purposes you define, such as:
   • Education expenses (tuition, books, etc.).
   • Healthcare needs.
   • General living expenses.
2. Customized Distribution Plans
   A trust allows you to delay full access to the inheritance until your children reach a more financially responsible age. For example:
   • Staggered distributions: 25% at age 25, 50% at age 30, and the balance at age 35.
   • Ongoing trust: Funds can be held in trust for their lifetime, with distributions made as needed.
3. Asset Protection
   A trust can include spendthrift provisions to protect your children’s inheritance from creditors, lawsuits, or divorcing spouses.
4. No Court Involvement
   Because a trust avoids probate, there’s no need for court oversight, saving time, money, and maintaining privacy for your family.

Why a Trust is Better for Families with Minor Children

• Financial Maturity: You can control when and how your children receive their inheritance.
• Privacy: The trust is not part of the public record, unlike a will.
• Reduced Costs: Avoiding probate eliminates court fees and legal expenses associated with guardianship.

Why Planning Ahead is Essential

Without proper planning, your estate may pass to your minor children under Ohio’s intestacy laws (Ohio Revised Code Chapter 2105) if you die without a will or trust. In this case, the probate court will appoint a guardian, and your children will receive their inheritance outright at age 18—whether they’re ready or not.

Taking the time to create an estate plan that includes a trust ensures your children are cared for financially and protected from unnecessary risks.

Secure Your Children’s Future with a Customized Estate Plan

If you have minor children, now is the time to ensure their inheritance is handled responsibly and securely. At Ohio Heritage Law, I specialize in creating wills and trusts tailored to protect your family and give you peace of mind.

Contact us today at (330) 571-4151 or visit my calendar to schedule a consultation. Together, we’ll create a plan that puts your children’s future first.

Don’t wait—your family deserves the best protection. Let’s start planning today.

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