By David Disraeli
Most people are aware that a person can not inherit or own assets until they reach the age of eighteen (in Texas and most places). If a minor does inherit property without proper planning the state becomes the trustee. A court appearance is required for each distribution and it is extremely burdensome. Proper planning requires that a trust is included in any will where a minor (child, grandchild, niece, etc.) may inherit property. For example if you leave all your assets to grown children and one of the dies prior to receiving the property the money will pass to their children, even if you did not mention that in your will.
A problem I see frequently is that clients name their children as secondary beneficiaries on their life insurance policies, 401ks, IRAs and other non probate assets without realizing that the children simply can not inherit the money. For more information contact David Disraeli at 512-464-1110
For Email Newsletters you can trust