Minor Children and Estate Plans

August 25, 2025

The beauty of estate planning is that every estate plan is different. Every person has their own unique situations and needs that need to be planned for. One of the most important things to plan around is minor children. When planning for minor children, two main concerns are front and center: who will be guardian and legally responsible for the well-being of the minor child, and how will that minor child’s upbringing and care be paid for?

Guardianship

If the legal guardians of a child (usually the parents) die before the child reaches the age of 18, a guardianship proceeding for the minor child will be necessary. In short, someone will petition the court to become the guardian of the child and at the end of the proceeding the Court will appoint someone as guardian for the minor child. If a parent with minor children has an estate plan, they will be able to exercise control over who will be the legal guardian for their child. In their estate plan, a parent can nominate someone to become the guardian of their minor children. A judge will give great weight and consideration to the wishes of a deceased parent regarding whom they want to be legal guardian for their child. Assuming the person nominated by the deceased parents is qualified to be a legal guardian for a minor child, it is likely that person will ultimately be appointed legal guardian for the minor child by the court.

Financially Supporting a Minor Child

One of the best ways a parent can ensure that their minor children can be financially secure and taken care of is by embedding a contingent trust for their minor children in the parent's estate plan. Provisions for the trust for the minor child will be embedded in either the parent's will or the parent's trust. I commonly refer to this type of trust as a contingent trust for minors (CTFM). How a CTFM works is upon the death of the parent, if their minor child is under a certain age (18 is the minimum but the age can extend to as late as the parent wants), the CTFM is automatically created at the parent's death and all assets the minor child is inheriting will be placed in the CTFM. The assets in the CTFM will be used for the child's benefit. The CTFM will terminate once the child reaches a certain age. Once the CTFM is terminated, all remaining assets held in the CTFM are given directly to the child.

A CTFM allows a parent to exercise great control over how the assets will be used to provide for their children. There will be directions that give the trustee discretion to use assets held by the trust for the health, education, maintenance, and support of the child.  The parent will also be able to lay out specific distributions that should occur on specific dates or events. Examples of some commonly requested specific distributions are:

• $____ to the child when they turn 18

• $____ to be used for an international trip for the child if they graduate high school

• $____ to the child when the child graduates from university or trade school

• $____ to be used for wedding expenses if the child gets married

• $____ to the be used as part of a down payment if the child purchases a home

Allowing a parent to spell out specific events that trigger specific distributions from the trust allow that parent to, in a sense, guide their child and facilitate a better life for their child. These specific distributions allow parents to nudge their children in the right direction and to make a meaningful impact on their children’s lives even if the parent isn’t alive.

It is also important to note that the parent will dictate when the CTFM will terminate and the remaining assets will be distributed directly to the child. A child who turns 18 and then receives all their inheritance may spend their inheritance unwisely. By delaying the termination of the trust until the child reaches the age of 22, 25, or even later, a parent can ensure their child is likely more mature and more responsible when the child receives their inheritance outright.

An important consideration is who will serve as trustee of the CTFM. The trustee will have great discretion in making sure the money held by the trust is used wisely and efficiently. If there are no close relatives or friends who are responsible and can serve as trustee, it is always possible to name a bank or a professional fiduciary as trustee.

Conclusion

It is extremely important that parents with minor children have an estate plan in place. Ensuring an appropriate and responsible person is nominated as guardian for minor children is vital. Equally important is making sure assets will be available to support the children as long as they are minors. An estate plan will ensure that should something happen to a parent before their children turn 18, that the children will be well supported and taken care of. Contact me today to see how I can help you set up an estate plan that protects not only your interests but also your minor children's interests.