Responsibilities of a Guardian or Custodian for a Minor’s Inheritance

LIST Code

ES-02-06-02-00

Title

Responsibilities of a Guardian or Custodian for a Minor’s Inheritance

Definition

Legal issues related to managing money or property inherited by a minor. This includes understanding the duties of a guardian of the estate, conservator, or custodian appointed to hold and manage assets on behalf of a child until they reach adulthood. This issue covers situations where a child receives an inheritance through a will, trust, life insurance policy, settlement, or other source, and an adult is legally responsible for managing those funds. The guardian or custodian must safeguard the assets, use them only for the child’s benefit, keep accurate records, and follow court or statutory requirements governing the account. Depending on the structure, this may involve court oversight or a custodial account under a uniform transfers to minors law. It also includes understanding limits on spending, reporting requirements, investment responsibilities, and when court approval is required for certain transactions. Legal questions may involve fiduciary duties, accounting obligations, liability for misuse, and the transfer of assets to the child once they reach the age specified by law. Rules vary by jurisdiction and by the legal mechanism used to hold the inheritance. Includes: - Duties of a guardian of the estate or conservator for a minor - Responsibilities of a custodian under a minors’ transfer statute - Managing and investing inherited funds for a child - Using funds for the minor’s benefit - Recordkeeping and court reporting requirements - Liability for misuse or mismanagement of a minor’s inheritance - Transferring assets to the child at the age of majority or statutory age

Location in LIST