How to Leave Assets to Your Children in Virginia

The best way to leave assets to your children in Virginia depends on their ages, your family situation, and how much control or protection you want to provide. A will may be enough for some families, but a trust can help manage assets for minor children, delay distributions until a certain age, and make things easier for loved ones

You can either leave them in a Custodial Account or in a Trust. The main difference is ownership of the accounts. The beneficiaries (kids) own the custodial account and have full access to all the assets at a stated age, whereas the trust owns the assets it holds and there is more accountability for distribution.

For a broader look at how wills and trusts work together, see our page on wills and trusts in Virginia.

Custodial Accounts

With a custodial account, the beneficiaries (kids) own the account and have full access to all the assets at a stated age. When the child named in the custodial account becomes an adult (at whatever age you choose), he or she is free to spend that money anyway he or she sees fit. That means they can use it to pay for college, put a down payment on a house, or blow it all on a fancy new car.

Trust

A Trust Fund is not only for families with millions whose kids go to private school. A trust not only provides the person giving the money (you) with more control, but it also offers greater asset protection for the beneficiaries (kids). Since the trust owns the assets, once you pass the trust keeps the assets protected from creditors and potential divorce or separation proceedings of your kids in the future. You get to set the terms of the trust and determine at what ages, life events, or other intervals assets are to be dispersed. You also get to choose how much they get at every interval, either a dollar amount or a percentage of the available assets. You can also impose additional restrictions, such as attending an institution of higher education or securing employment before your kids would be eligible for a distribution.

Parents with minor children should also think about guardianship and who would manage money for their children. Learn more about estate planning for families in Virginia.

Hammelman Law helps families in Ashburn, Loudoun County, and Northern Virginia create estate plans that protect children, name trusted decision-makers, and make inheritance easier to manage.