Avoiding Procedural and Tax Complexities When Naming Minors in your Estate Plan
Author: Klaralee R. Charlton
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Many estate plans are designed to benefit younger generations, including minor children, grandchildren, nieces, and nephews. However, naming minors as beneficiaries of financial accounts or real estate can create unexpected legal and administrative challenges.
This course examines the implications of designating minors as beneficiaries and explores strategies to streamline the post-death claim process. Participants will learn how to structure wills and trusts to protect a minor’s inheritance while minimizing legal hurdles and unnecessary administrative burdens for families. Practical solutions for optimizing estate plans will be discussed to ensure smooth and efficient asset transfers.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN cardPublication Date: September 2025
Topics Covered
- Inheritances by Minors
- Guardianships & Conservatorships
- Uniform Transfer to Minors Act
- Minors Named in Retirement Accounts
- Naming Trust as Beneficiary of IRA
- Kiddie Tax
- GST Tax Considerations
Learning Objectives
- Explain the default legal and administrative outcomes when minors are named as direct beneficiaries of financial accounts and real estate
- List the necessary steps for collecting and managing funds on behalf of a minor beneficiary
- Identify the most effective methods for transferring assets to minors to achieve intended estate planning goals while reducing administrative complexity
- Explain the responsibilities and obligations of a trustee or administrator managing a minor’s inheritance
- Recognize common terminology used for trusts designed to protect inheritances from irresponsible beneficiaries
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
