My Legal | Money to Children

 

 

If you think that part of your estate might be distributed to a child or young adult, you should consider having a trust.

Under Michigan state law, if a minor receives an inheritance, this money is supervised by the court while that child is a minor and then is distributed outright to the 18 year old.

However, it is often not a good idea for an 18 year-old to have full control of a lot of money.  A trust would allow distribution to a child at an age older than 18 say 25 for instance, giving that child more time to mature.

A Trust would also allow you to distribute money to young adults over time – say 1/3 of the money at 25, 1/3 of the money at 28 and 1/3 of the money at 30.

This system allows a young adult to receive money in chunks to learn how to handle that money appropriately.

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