Protecting Your Children’s Future: Estate Planning When Minors Are Involved

If both parents pass away or become incapacitated, who cares for your minor children (under age 18)? How do they receive financial support without court headaches? Kentucky law provides clear paths, but only if you plan ahead. Without proper documents, a court decides these critical matters—often not in line with your wishes.

1. Naming a Guardian for Your Minor Children

The most urgent step for parents of minors is nominating a guardian in your last will and testament. Kentucky law (governed by KRS statutes) allows you to designate who should have custody and care of your children.

Why it matters:

If no guardian is named in a valid will, the court appoints one—potentially a relative or even a stranger—after considering factors like the child's best interests. Courts give significant weight to your nomination if properly documented.

How to do it:

o Name your primary guardian (and an alternate) in your will.

o Specify the person by full name and relationship.

o The nominee should be a trusted adult (18+, of sound mind, not incarcerated).

o Both parents should align on choices and include provisions in their individual wills.

o For children 14 or older, Kentucky courts may consider their preferences.

Additional tip:

Discuss this with your chosen guardian(s) in advance—they need to agree and understand responsibilities like daily care, schooling, medical decisions, and faith upbringing. Even with this nomination, a surviving spouse may face court-supervised guardianship proceedings for the children’s assets if the minor inherited property directly.

2. How Minors Inherit Assets in Kentucky

Minors cannot legally receive or manage inheritances outright. Kentucky does not allow direct transfers to children under 18.

Default without planning:

Assets go into a court-supervised guardianship or conservatorship. The guardian manages funds until age 18, when the child gains full control—often too young for large sums.

Court oversight burdens:

Annual accountings, restricted “blocked” accounts, and fees create delays, costs, and stress—even for a surviving parent.

Better options exist to control distribution and protect your children.

3. Key Tools to Manage Inheritance for Minors

A. Testamentary Trusts (Created in Your Will)

A testamentary trust activates upon your death via your will. It’s one of the best ways to provide for minors.

• You name a trustee (often separate from the guardian) to manage funds.

• Specify uses: education, healthcare, and living expenses.

• Set distribution ages—e.g., partial at 21, 25, full at 30 or 35—to prevent an 18-year-old windfall.

• Avoids court guardianship for assets and offers long-term protection.

B. Revocable Living Trusts with Minor

Provisions Fund a living trust during your lifetime and include sub-trusts for minors. This avoids probate entirely and provides seamless management.

C. Uniform Transfers to Minors Act (UTMA) Accounts

For smaller gifts or accounts, use a UTMA custodial account.

• Custodian manages until the minor reaches age 18 in Kentucky (termination at 18 for most custodial property under KRS 385).

• Simple and low-cost, but the child gets full control at 18—no staggered distributions.

D. Beneficiary Designations

Name trusts (not minors directly) as beneficiaries on life insurance, retirement accounts, or POD/TOD designations to route funds into protective structures.

4. Common Pitfalls and Tips for Kentucky Families

• Intestacy laws: Without a will, Kentucky’s default rules divide assets (often half to spouse, half to children), triggering guardianship for minors’ shares.

• Surviving spouse issues: Even with a surviving parent, court involvement may be needed for the children’s inheritance portions.

• Review regularly: Update plans after births, divorces, moves, or deaths.

• Coordinate documents: Pair your will with powers of attorney, healthcare directives, and beneficiary updates.

• Privacy and speed: Trusts often bypass probate, keeping details private and distributions faster.

Take Action Today

Estate planning for families with minors isn’t just about assets—it’s about ensuring your children’s care and security reflect your values. Start with:

1. A conversation about guardians.

2. Consulting a Kentucky estate planning attorney (Louisville has many experienced in family matters).

3. Drafting or updating wills and trusts.

This isn’t DIY territory—small mistakes can lead to court battles or unintended outcomes. Professional guidance tailors a plan to your family’s needs. Your children deserve the best future possible. Plan now so love, not courts, guides their path. Questions? Contact the English Law Group, P.S.C.—individual circumstances vary under Kentucky law.