When in search of a beneficiary for land, such as a land trust, you may consider having your children be their land trust beneficiary.
But should a minor be the beneficiary of a land trust?
When it comes to your minor children, the answer to this question is up to you and your specific situation. However, it is not recommended to have children under the age of 18 be a land trust beneficiary because are not usually financially responsible.
That said, if you would like to leave your property to your minor children if something happens to you before they turn 18, there is something you can do. There is something called a Minor's Trust. A minor's trust is a trust that can be left to your children.
When a parent chooses to leave property to their child or children in the event that something happens to one or both of them before the child or children are of age to take on the responsibility of a land trust, the parent or guardian can leave their property to them in their will and choose a close friend or family member to be the land trust until the child turns of age. "Of age" is normally 18, but the parents can choose for their child to be older than that if they don't think they will be able to handle the responsibility at that age.
Until the child turns the age the parent chooses, a trusted and close friend or family member can be designated to keep the deed of the property until the child reaches the designated age and are allowed to have the property themselves.
Before you decide on naming a child the beneficiary of your land trust, consider any other options you do have. There should be someone you can trust to be the land trust of your property. A close friend or a trusted family member are two options to choose from and they should be considered before leaving this huge responsibility in a child's hands.
Finally, before using a land trust, you need to find an attorney that can handle this type of thing. This is because the attorney is licensed to draw up the required documents for the purpose of a land trust.
Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.
Ready to know more than your attorney? You'll get over two hours of instruction combined with five ebooks to teach you how to best structure your real estate investments.
Join thousands of real estate investors in all 50 states as they enjoy exclusive content, special promotions, and behind-the-scenes access to me and my guests. No spam, ever. Just great stuff!