No parent wants to imagine the worst-case scenario. But one of the most important estate planning questions you can ask is:
What actually happens if my child inherits money while they’re still a minor?
Many parents assume a surviving family member can simply manage the money for the child. Unfortunately, it’s not that simple under Florida law. Without planning ahead, the court — not your family — decides what happens next.
Here’s how it really works.
In Florida, children under 18 generally cannot legally manage inherited money or property themselves. That means:
So if assets are left directly to a minor, someone else must step in to manage them.
If your child inherits a significant amount of money, the court will likely require a guardianship of the property. This involves:
Guardianships can be:
And the person you would have chosen may not automatically be the one appointed.
Here’s the part that surprises many parents. Even if a guardian manages the funds responsibly, once your child turns 18, they receive the entire inheritance outright.
No restrictions. No safeguards. For many 18-year-olds, suddenly receiving a large sum of money can be overwhelming — and easily spent too quickly.
Assets like life insurance, 401(k)s, and IRAs pass directly by beneficiary designation — not your will.
If a minor is named directly, the same guardianship issues can arise. So simply naming your child isn’t always the best solution.
If you leave money directly to a minor child, the court will likely be involved, costs will increase, and your child may receive everything at 18 whether they’re ready or not.
The good news? With the right planning, you can avoid all of this.
(And that’s exactly what we’ll talk about in our next post!)
