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Faizan
If you're a parent, you likely to want to ensure that you provide for your child after your death, particularly if your child is still a minor. No state -- including Florida -- prohibits this. However, different states have varying provisions for what happens with a child's inheritance until she reaches the age of majority. Florida's laws are a bit more strict than most.
Limitations on Parents' Rights
Even when both parents are alive, Florida law only permits them to manage their child's real property, personal property and money up to a value of $15,000. This is the case whether the child receives an inheritance or accepts property in some other way such as from a lawsuit award or settlement. If you leave your child an inheritance worth more than $15,000, the court must get involved, even if her other parent is still living.
Appointment of Guardian Ad Litem
The court will appoint a guardian ad litem to represent your minor child's interests throughout the probate process if she stands to inherit $15,000 or more. This is not the same individual who will manage her money going forward after probate closes. The guardian ad litem is an attorney assigned by the court to protect your child's best interests during the proceedings. Typically, your estate bears the cost of this attorney's services, possibly reducing the value of your child's inheritance or the inheritances of your other beneficiaries or heirs. Before probate can close and your estate settled, the guardian ad litem must make a written report to the court, stating whether he believes that your child's share of your estate is accurate given the terms of your will, or according to state law if you died without a will.
Court-Ordered Guardianship
A Florida court will appoint another guardian to manage and oversee your child's inheritance after probate closes. While it may seem like a contradiction at first glance, the surviving parent is preferred for this role. However, she's not given free rein to handle the inheritance anyway she likes without supervision. She must submit an inventory report to the court within 60 days of the close of probate, detailing the child's inherited assets, and then report to the court annually regarding the status of the inheritance and how she's managing it. When your child reaches the age of majority, which is age 18 in Florida, her guardian turns the inheritance over to her, makes a final accounting to the court and asks the court to discharge her from duty. If the child's other parent isn't alive, the court will appoint a third party to act as guardian; this individual would typically be entitled to compensation. His fee for services would come from your child's inheritance. If it's a grandparent or other relative, however, the guardian may decline to take payment.
Trust Options
Trusts fall outside the scope of probate and are not subject to the same laws. If you and your child's other parent break up and you're not comfortable with the court appointing the other parent as guardian of your child's inheritance, even with court supervision, you can avoid the problem by leaving your child's inheritance in trust for her instead. You might also do this if your child's other parent is deceased and you don't want a third party selected by the court to take control of the money. If you establish a revocable living trust, you can arrange it so that your child's inheritance moves into an irrevocable trust upon your death. You can personally choose the trustee, who will manage the trust until your child reaches the age at which you want her to receive her inheritance. This can be older than age 18 if you like because as the creator of the trust, you can make this determination. You can also write your will to provide for a testamentary trust. In this case, your child's inheritance would move into a trust that the executor of your estate creates at your death. You can name the trustee in your will.
Limitations on Parents' Rights
Even when both parents are alive, Florida law only permits them to manage their child's real property, personal property and money up to a value of $15,000. This is the case whether the child receives an inheritance or accepts property in some other way such as from a lawsuit award or settlement. If you leave your child an inheritance worth more than $15,000, the court must get involved, even if her other parent is still living.
Appointment of Guardian Ad Litem
The court will appoint a guardian ad litem to represent your minor child's interests throughout the probate process if she stands to inherit $15,000 or more. This is not the same individual who will manage her money going forward after probate closes. The guardian ad litem is an attorney assigned by the court to protect your child's best interests during the proceedings. Typically, your estate bears the cost of this attorney's services, possibly reducing the value of your child's inheritance or the inheritances of your other beneficiaries or heirs. Before probate can close and your estate settled, the guardian ad litem must make a written report to the court, stating whether he believes that your child's share of your estate is accurate given the terms of your will, or according to state law if you died without a will.
Court-Ordered Guardianship
A Florida court will appoint another guardian to manage and oversee your child's inheritance after probate closes. While it may seem like a contradiction at first glance, the surviving parent is preferred for this role. However, she's not given free rein to handle the inheritance anyway she likes without supervision. She must submit an inventory report to the court within 60 days of the close of probate, detailing the child's inherited assets, and then report to the court annually regarding the status of the inheritance and how she's managing it. When your child reaches the age of majority, which is age 18 in Florida, her guardian turns the inheritance over to her, makes a final accounting to the court and asks the court to discharge her from duty. If the child's other parent isn't alive, the court will appoint a third party to act as guardian; this individual would typically be entitled to compensation. His fee for services would come from your child's inheritance. If it's a grandparent or other relative, however, the guardian may decline to take payment.
Trust Options
Trusts fall outside the scope of probate and are not subject to the same laws. If you and your child's other parent break up and you're not comfortable with the court appointing the other parent as guardian of your child's inheritance, even with court supervision, you can avoid the problem by leaving your child's inheritance in trust for her instead. You might also do this if your child's other parent is deceased and you don't want a third party selected by the court to take control of the money. If you establish a revocable living trust, you can arrange it so that your child's inheritance moves into an irrevocable trust upon your death. You can personally choose the trustee, who will manage the trust until your child reaches the age at which you want her to receive her inheritance. This can be older than age 18 if you like because as the creator of the trust, you can make this determination. You can also write your will to provide for a testamentary trust. In this case, your child's inheritance would move into a trust that the executor of your estate creates at your death. You can name the trustee in your will.
Posted in: Estate Laws
