How to Leave Money to Your Minor Children the Smart Way (Without Court or Chaos)

If you have minor children, one of the most loving things you can do is create a plan for how they would inherit if something happened to you.

Because here’s the truth: Leaving money “to the kids” without a strategy can create court involvement, unnecessary expenses, and financial risks.

Fortunately, Florida parents have several smart tools that allow you to stay in control. Let’s walk through your options.

Option 1: A Revocable Living Trust (Most Control & Flexibility)

For many families, a revocable living trust is the gold standard. Instead of leaving assets directly to your children, you leave them to a trust managed by someone you choose (your trustee).

This allows you to:

• Avoid guardianship and court supervision
• Choose who manages the money
• Set rules for spending
• Spread distributions over time
• Protect funds from misuse

You might decide:

• Funds for health, education, maintenance, and support only
• One-third at 25, one-third at 30, the rest at 35
• Or staggered payments based on maturity

You stay in control — even after you’re gone.

Option 2: Custodial Accounts (UTMA)

Florida also allows UTMA accounts (Uniform Transfers to Minors Act). These are simpler and less expensive than trusts. A custodian manages the money for the child until a certain age (often 21).

Pros:

• Easy to set up
• Lower cost
• No court involvement

Cons:

• Limited control
• Child receives everything at the statutory age
• Less flexibility than a trust

This can work well for smaller amounts.

Option 3: Naming a Trustee for Life Insurance & Retirement Accounts

Instead of naming your child directly as beneficiary, you can name:

• A trust, or
• A trusted adult as trustee

This prevents court guardianship and ensures someone responsible manages the funds properly.

Choosing the Right Person Matters

Whether you use a trust or custodial account, choose someone who is:

• Financially responsible
• Organized
• Trustworthy
• Willing to serve

This person doesn’t have to be the same as your child’s guardian. You can separate roles for checks and balances.

The Bottom Line

Planning ahead means:

• No court involvement
• No forced payouts at 18
• No financial chaos

Instead, your child receives support and protection — exactly how you intended. Because estate planning isn’t just about passing on money. It’s about passing on stability.

Ready to plan? Book a call today.