Minor Beneficiary Clause

A Minor Beneficiary Clause is a provision typically included in a will or trust that addresses the distribution of assets to beneficiaries who are under the age of majority, usually 18 years old in most jurisdictions.

This clause is essential because minors cannot legally receive property or assets directly. Instead, the clause outlines specific instructions on how the assets should be managed and distributed until the minor reaches a certain age. For example, the clause may specify that a guardian or trustee will manage the assets on behalf of the minor, ensuring that the funds are used for the minor’s benefit, such as for education, health care, or general support.

Additionally, it can set forth a timeline for when the minor will receive full control of their inheritance. This could be at age 18, 21, or even older, depending on the wishes of the grantor. The clause may also designate who will serve as the guardian or trustee, providing clarity and reducing potential disputes among family members.

In Texas, where the laws govern the management of estates and trusts, it is prudent to include a Minor Beneficiary Clause to comply with state requirements and protect the interests of minor beneficiaries effectively.