Resource Center
Resource Center

Paley Rothman shares this library of resources with clients and friends of the firm to help them stay ahead of legal and business developments and trends. Here, you will find helpful tips and tools written by our attorneys and relevant to our areas of practice. If you have any questions about the content available in the resource center, please contact us.

Estate & Trust Administration

FAQ: At my death, what happens to assets that are distributed to a person under 18?

Generally, if assets are to be distributed directly to a minor (either under a Will or by beneficiary designation), the law of many states require that a special account be created for the funds until the beneficiary is 18. To avoid creating this type of account, and to prevent a beneficiary from receiving the funds at such a young age, it is generally recommend to have assets pass to a Trust for a young beneficiary. Trust funds can be used for the beneficiary’s benefit, but the funds are managed by a Trustee until the beneficiary reaches a certain age or ages.

It is important to coordinate life insurance and retirement accounts beneficiary designations with the terms of the Will and/or revocable Trust since the beneficiary designations (and not the Will or Trust) govern how the insurance proceeds and retirement funds are distributed.