A Minor’s Trust is a legal arrangement established to manage and protect assets or property intended for the benefit of a minor child until they reach the age of majority, which is typically 18 in most jurisdictions.
The purpose of a Minor’s Trust is to ensure that the minor’s inheritance or gifts are handled appropriately, preventing mismanagement or premature access to funds. The trust is managed by a designated trustee, who is responsible for making decisions concerning the investment and distribution of the trust assets in accordance with the terms set forth in the trust document.
For example, if a grandparent establishes a Minor’s Trust for their grandchild, the trust may hold cash, stocks, or real estate. The trustee can use the income generated by these assets to pay for the minor’s education, health expenses, or other necessary costs. Once the minor reaches the age specified in the trust (often 18, but it could be older), they gain full access to the trust assets.
In Texas, the creation of a Minor’s Trust is governed by both statutory law and common law, allowing for flexibility in how trusts can be structured. Additionally, in the Houston area, it’s common for families to incorporate specific provisions in the trust to address local probate laws or to include guidance on how the assets should be used once the minor reaches adulthood.
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