Estate Planning Attorney for Minor Children in North Carolina

Trusts

A trust is a common estate planning tool that allows parents to set aside assets for the benefit of their minor children. Trusts can ensure that children receive financial support in a structured way to protect them from mismanagement of funds or premature access.

For example, a revocable living trust allows parents to maintain control over their assets, adjust its terms, or revoke it during their lifetime. It specifies how the assets should be managed and distributed after their death. A revocable living trust avoids the probate process and ensures that funds are quickly accessible for the children’s needs.

Another estate planning option in North Carolina is creating a testamentary trust. Created through a will, this trust goes into effect upon the death of the parents. It specifies how assets should be managed and distributed to the children without the need to go through the costly and time-consuming probate process.

When establishing a trust, parents should appoint a reliable trustee to manage the funds responsibly. This helps protect minors from potential financial pitfalls and ensures that the assets are used exclusively for their benefit. To ensure that your trust goals are met, it’s advisable to work with an estate planning attorney who can help you create clear and effective instructions. 

Guardianship

Choosing a guardian for minor children is one of the most critical decisions parents can make during the estate planning process. A guardian is responsible for the care and upbringing of the children in the event of the parent’s death or incapacitation.

Parents can appoint a trusted individual as the guardian of their minor children through their will. This ensures that the court considers their wishes when making guardianship determinations. We often advise parents to also name alternate guardians in case the primary choice is unable or unwilling to be a guardian.

Factors to consider when selecting a guardian include:

• Their ability to provide a stable and nurturing environment
• Stability of their home
• Shared values and parenting philosophies
• Personality traits of the guardian
• The age of the guardian 
• Location of the guardian 
• Willingness and capacity to take on the responsibility

By addressing guardianship in your estate plan, you can help prevent disputes among family members and provide clarity about your wishes. That way, despite your absence, your children can be raised in a supportive and loving environment.

North Carolina Uniform Transfer to Minors Act

The North Carolina Uniform Transfer to Minors Act (UTMA) provides another option for transferring assets to minors. Under UTMA, parents or guardians can designate a custodian to manage assets for the child until they reach the age of majority or depending on the terms set, such as the child reaching the age of 21 or 25.

These accounts are relatively straightforward to set up and provide a structured way to manage assets for a minor without the need for a formal trust. The custodian can use the funds for the child’s benefit, including education, healthcare, and general welfare. However, once the child reaches the designated age, they gain complete control of the assets.

UTMA accounts are a useful tool for smaller asset transfers or when a simpler arrangement is preferred. However, they may not provide the same level of control as a trust, making them better suited for situations that do not require the formalities of a trust.