If you have a will that leaves everything to your children, you may feel confident that your family is protected. In many ways, you are right. However, one detail tends to catch parents off guard during the planning process.
In New York, a minor cannot legally receive an inheritance outright. Understanding what legal mechanisms are available to address it is one of the more consequential decisions you can make as a parent.
Why minors cannot inherit directly in New York
New York law does not allow children under 18 to hold or independently manage assets beyond a legally defined threshold on their own. If a minor stands to inherit more than $10,000, the state requires a court-appointed guardian of the property to assume oversight of those assets on the child’s behalf.
This applies even if both parents are alive and fully equipped to manage the funds themselves. Without a formal plan in place, the court determines how the inheritance is administered, not you.
What happens without a trust and what changes when you have one
When a minor inherits without a trust, the process proceeds through the Surrogate’s Court. Someone must file a petition, the court appoints a guardian of the property, and the funds go into a joint account with the Clerk of the Court. The guardian cannot access the money without returning to court each time.
The process involves legal fees and ongoing court oversight that can extend for years. When your child turns 18, they receive the full amount at once with no restrictions or conditions.
A trust circumvents that court-supervised process entirely. You name a trustee you choose, set the age at which your child receives the funds, and specify how the funds may be allocated and administered in the meantime — education, healthcare, basic needs.
Your child receives the remainder at whatever age you consider appropriate, whether that is 25, 30 or in stages over time. The proceeding stays out of court and your family’s financial matters remain private.
Why now is the right time to set up a trust
Estate planning with young children at home tends to feel like something you can address when life settles into a steadier rhythm. The problem with waiting is that life rarely follows the timeline we assume. A trust does not have to be complex or costly to establish. The sooner you act, the more control you keep over what happens to your children’s inheritance.
Speaking with an estate planning attorney can help you understand which type of trust aligns with your family’s circumstances and how to put it in place without the process becoming overwhelming.
