Asked 11 months ago - State College, PA
FlagMy 4-year-old son will soon inherit $75,000 from his deceased uncle's estate. Am I required to, or should I legally protect his inheritance, so that it is there for him when he reaches adulthood - and if so, is there any recommended vehicle for me to do so?
What you should, or need to do initially depends on the terms of his uncle's will. In many cases, a will appoints someone to hold the money in trust for a minor child. That person would then have the responsibility to invest it wisely, and account for it later on.
If there is nothing in the will, you, or some other person would need to be appointed as guardian for your son, in order to have the authority to handle the money.
I would recommend that you consult with the attorney handling the estate, your own attorney, or both before proceeding.
You are required to protect his inheritance if you receive the funds as his parent / legal guardian. If you do, I would recommend placing the funds into an account which enables you to control the distribution of the funds for the longest period possible (probably up to your son's 21st birthday). An Uniform Gift to Minor's Account may only allow you to retain it until his 18th birthday so you may wish to look at alternatives. With any luck, the deceased uncle will have trust language in his will that is flexible enough to allow the Trustee to control the funds until your son needs them for school or he is as least wise enough to manage them appropriately.
Seamus M. Lavin, Esquire
Ryan, Morton & Imms, LLC
(610) 430-1504
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