What Happens When a Child Inherits Before They’re 18?
It’s a common move: listing your child as the beneficiary on your life insurance or bank accounts. But what most people don’t realize is that minors can’t legally inherit outright.
What the Law Says
In Georgia, if a minor (under 18) is named as a direct beneficiary of a life insurance policy or financial account, the money can’t be released to them. The court will step in and appoint a conservator to manage those funds—often someone the parent never intended.
This process can take months, require bond and annual accounting, and cost thousands in legal fees.
What About Property?
If a minor is set to inherit real estate, the problems multiply. A court may appoint someone to manage the property until the child turns 18. But selling or refinancing the home? That requires court approval every step of the way.
And once the child turns 18, they get full control—ready or not.
A Better Way: Use a Trust
By creating a revocable trust, you can leave assets to your children while naming an adult to manage the inheritance until they reach a responsible age. You can even stagger distributions—like 25 at age 25, 50 at 30, and the rest at 35.
It’s not just safer—it’s smarter.
