Can a minor inherit property in Florida? What every parent should know
Most parents name each other as beneficiary of the life insurance and retirement accounts, then list the kids as the backup. It feels responsible. It is what the form asks for. Here is what that form does not tell you. If the backup is ever needed, the insurance company will not write a $500,000 check to a nine-year-old. It will also not write it to that child’s other parent, grandparent, or aunt without a court order.
Why a child cannot simply receive an inheritance
A minor does not have the legal capacity to sign a contract, sell a house, or manage an investment account. So a bank, title company, or insurer needs an adult with legal authority over the child’s property. In Florida, parents are the natural guardians of their children. That gives a parent authority over the child’s care. It gives only limited authority over the child’s money.
The $15,000 rule
Under Section 744.301, Florida Statutes, parents may collect and manage amounts for their minor child that total $15,000 or less without a court appointment or bond. That covers an inheritance, life insurance or retirement proceeds, or a legal settlement.
Above $15,000, the court requires a guardian of the property. For a net settlement of a child’s legal claim above that amount, section 744.387 requires a legal guardianship.
Guardian of the person vs. guardian of the property
| Guardian of the person | Guardian of the property | |
|---|---|---|
| What they decide | Where the child lives, school, medical care | The child’s money and assets |
| When it is needed | Both parents have died or cannot care for the child | The child receives more than $15,000, even with a living parent |
| How you plan for it | Name a guardian in your will or a separate written declaration | Leave assets to a trust for the child instead |
The same person can serve in both roles. Many parents choose two different people on purpose.
What a guardianship of the property involves
- A petition to the court, with an attorney, a filing fee, and a background check for the proposed guardian
- A required guardian education course
- A verified inventory, then an accounting filed with the court every year
- Funds often held in a restricted account, with a court order needed for each withdrawal
- The guardianship ends when the child turns 18
The process exists to protect the child. It is also slow, public, and paid for out of the child’s own money.
The part that worries parents most
At 18, the guardianship ends and the remaining money belongs to the child, with no conditions. Few parents would choose to hand an 18-year-old a six-figure sum in a single day.
How to keep your child’s inheritance out of guardianship court
- Create a trust for your children. This can be part of your revocable living trust or built into your will. You choose the trustee, what the money can be used for, and the ages your child receives it.
- Name the trust as beneficiary. Update life insurance and retirement account forms so the trust, not the child, is the backup beneficiary.
- Name a guardian of the person. Put your choice in writing so a judge hears it from you.
- Use a custodial account for small gifts. The Florida Uniform Transfers to Minors Act works for modest amounts, with an adult custodian managing the funds.
- Review after every life change. A new child, a divorce, or a new account can undo an old form.
Frequently asked questions
Can I just leave everything to my sister to use for my kids? You can, but she would own it outright. She would have no legal duty to use it for your children, and it would be exposed to her creditors, her divorce, and her own estate.
Does my child’s other parent automatically control the inheritance? Not above $15,000. A surviving parent is the natural guardian of the child, but still needs a court-appointed guardianship of the property to receive larger amounts.
My child was named on a relative’s account or policy. What do we do? If the amount is over $15,000, a guardianship of the property is likely required before the funds are released. I help families through that process.
At what age can my child receive money from a trust? Whatever age you decide. Many parents choose stages, such as a portion at 25 and the rest at 30, with the trustee able to pay for education and health needs before then.
The next step
If your children are listed by name on any beneficiary form, this is worth a fifteen-minute conversation.
Book your free call and we will make sure what you leave reaches your children the way you intend. Se habla español.
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This article is for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by reading this content. Please consult a licensed Florida estate planning attorney for guidance specific to your situation.
