Estate planning becomes even more important when minor children or young beneficiaries are involved. Children cannot legally manage property or inherit assets outright in Georgia, which means parents and guardians must take extra steps to protect a child’s financial future. The right plan ensures your children are cared for, financially supported, and protected from unnecessary legal complications.
Whether you’re a new parent or updating an existing plan, here are the key factors to consider when estate planning for child beneficiaries.
1. Choosing the Right Guardian
If both parents pass away or become unable to care for their children, a Georgia court will decide who raises them unless a guardian is named in a will. Carefully choosing a guardian ensures your children will be raised by someone you trust.
Important considerations:
- Values and parenting style
- Location and stability
- Health and long-term ability to care for your child
- Relationship between the guardian and your child
- Willingness to accept the responsibility
Naming a backup guardian is also important in case your first choice cannot serve. Learn more on our Estate Planning Services page.
2. Deciding How and When Children Receive Inheritance
Children cannot directly inherit significant assets in Georgia until they reach adulthood. Without planning, the court may appoint a conservator, and the child will receive the inheritance all at once at age 18.
Most parents prefer more structure. Common options include:
Creating a Trust
A trust allows you to:
- Decide how and when money is released
- Protect assets from misuse
- Ensure funds are used for education, healthcare, and support
- Appoint a trustee to manage the assets responsibly
Many parents choose to stagger distributions, such as:
- A portion at age 21
- Another at age 25
- Final distribution at age 30
Choosing a Trustee
The trustee manages the assets for the child until they reach the ages you set. They should be financially responsible, trustworthy, and able to act in the child’s best interest.
Visit our Trusts & Estate Planning page to learn more about trust options.
3. Planning for Education and Healthcare Costs
A strong estate plan ensures that your child’s essential needs are funded, even if you aren’t there.
Consider planning for:
- Tuition for private school or college
- Healthcare and insurance coverage
- Extracurricular activities
- Mental health services
- Emergency expenses
Many parents include instructions in the trust to guide the trustee on how to spend funds for education and developmental needs.
4. Life Insurance for Family Protection
Life insurance is one of the most effective ways to provide financial security for child beneficiaries. The payout can cover long-term living expenses, housing, education, and healthcare.
Key points to consider:
- Choose a sufficient coverage amount
- Name your trust as the beneficiary, not the minor child
- Review your policies after major life changes
Naming a trust avoids probate and prevents a child from receiving funds too early.
5. Naming Beneficiaries on Accounts
Review and update beneficiary designations on:
- Retirement accounts
- Life insurance
- Pensions
- Payable-on-death (POD) accounts
- Brokerage accounts
Never name a minor child directly. Instead, name:
- A trust created for the child
- A custodian under the Georgia UTMA (for small amounts)
- A spouse or guardian who will manage funds until the child is older
This ensures the funds are properly managed and legally accessible.
6. Ensuring Financial Protection and Asset Management
Children are especially vulnerable without legal safeguards, so a good estate plan should include:
- A durable financial power of attorney
- A healthcare directive for parents
- A plan for managing real estate or businesses
- Instructions for managing sentimental items
These documents ensure that if something happens to you, your child’s financial footing remains stable.
7. Planning for Special Needs or Unique Circumstances
If your child has special needs, a standard trust may disqualify them from receiving government benefits. In that case, you may need a Special Needs Trust to:
- Preserve eligibility for Medicaid or SSI
- Pay for supplemental care and resources
- Provide long-term financial stability
Other situations, such as blended families or children from previous marriages, may also require customized planning.
8. Updating Your Estate Plan as Children Grow
Estate plans should evolve as your family evolves. Update your documents when:
- You have another child
- A guardian’s situation changes
- You divorce or remarry
- Your financial situation changes
- Your child’s needs change
A review every 3–5 years ensures your plan stays current and effective.
Final Thoughts
Estate planning for children requires thoughtful preparation. By choosing the right guardian, setting up trusts, planning for education and healthcare, and protecting assets with proper legal documents, you ensure your children have the financial and emotional stability they deserve.
If you’re ready to create or update an estate plan that protects your child beneficiaries, Hurban Law can help you create a customized, Georgia-specific strategy that fits your family’s needs.
