Planning for the future is one of the most thoughtful and responsible decisions you can make. But even with the best intentions, some common estate planning mistakes can create legal complications for your loved ones. One of the most frequent—and avoidable—errors is naming a minor as a direct beneficiary of an asset.
Can a Minor Inherit in North Carolina?
No. Under North Carolina law, minors (anyone under the age of 18) cannot legally inherit assets directly. That means if you list a minor as a beneficiary on your life insurance policy, retirement account, or other financial assets, it doesn’t automatically go to them upon your passing.
Instead, the process becomes complicated—and costly.
What Happens If You Name a Minor as a Beneficiary?
While it may seem loving and straightforward to name your child or grandchild as the recipient of an asset, doing so can trigger unintended consequences:
🔹 The court must get involved because a minor can’t receive the asset directly.
🔹 A guardian of the estate must be appointed—even if one wasn’t previously named.
🔹 Your family may need to hire an attorney to navigate this process.
🔹 It can take months or longer to resolve, delaying access to important resources.
🔹 Court oversight continues until the child turns 18, which adds more administrative burden.
This court-supervised guardianship is time-consuming, expensive, and stressful—especially during an already emotional time for your family.
What’s the Solution? Use a Trust
To avoid these complications, the best approach is to establish a trust.
Why a Trust Is the Better Option:
✅ You stay in control of how and when the minor receives the assets.
✅ No court involvement is required when a trust is used properly.
✅ You can outline age-based distributions, such as 25% at age 21, another 25% at 25, etc.
✅ You can name a responsible trustee who will manage the funds according to your instructions.
Let’s say you want your life insurance to support your 10-year-old son if something happens to you. Instead of naming him directly, you can:
💼 Set up a trust that becomes active upon your death
🧾 Name the trust as the beneficiary of your life insurance policy
👤 Appoint a trusted adult as trustee to manage the funds
📘 Include instructions on how the funds should be used—for school, living expenses, or healthcare
This avoids the courts, protects the child, and ensures your wishes are followed precisely.
Already Named a Minor as a Beneficiary? Here’s What to Do Next
If you’ve already listed a minor as a direct beneficiary on any of your assets, don’t panic—but don’t delay either.
Take these steps:
- Review your current estate plan.
Look at your will, trust, insurance policies, and retirement accounts. - Identify any minor beneficiaries.
Confirm who is listed and how. - Meet with an estate planning attorney.
A professional can help you create or amend a trust and ensure your documents align with North Carolina law. - Make necessary updates immediately.
Protect your loved ones and ensure your assets are transferred the right way.
Plan Today So Your Family Doesn’t Pay Tomorrow
👉 Contact us today to schedule a consultation.
At Sabrina Winters Law, PLLC, we help families across North Carolina create estate plans that protect what matters most — especially when it involves minors and complex legal details.
Planning ahead means peace of mind for you and your loved ones.
👉 Schedule your consultation today at sabrinawinterslaw.com
📅 Easy online booking available right on our homepage
📍 Proudly serving Charlotte and surrounding areas
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