Planning for Peace of Mind: Essential Estate Planning for Minor Children in Washington State

A major life event, such as having a child, can prompt a person to seek out advice about setting up an estate plan. Whatever the case, there are special considerations that go into estate planning when minor children are involved. While it can be an emotional matter to think about and discuss, knowing that you have a plan in place in case of the death of one or both parents will bring great peace of mind.

Part I: Appointing a Guardian (The Person)

One of the most important parts of an estate plan is ensuring the continued care of your minor child.

What does a Guardian do?

A Guardian is the person nominated to take physical and legal custody of a minor child, having the rights to do things a parent would typically do (making decisions about schooling, health, and residence). This role is entirely separate from the individual who manages the child's inherited money, though the same person can serve both roles.

How do I Nominate a Guardian?

An individual can formally nominate a guardian for their minor child in their Will.

• The Court's Role: Crucially, your Will does not directly appoint the guardian; it serves as a strong recommendation to the court. The process of appointing an individual as guardian is done through a formal court process brought after the death of the parents.

• Court Weight: A judge in Washington State will give the parents’ wishes about the choice of the individual nominated great weight when deciding whether to appoint them, but the court ultimately must determine what is in the child's best interests.

• The Surviving Parent: Unless the other biological parent has had their parental rights legally terminated, they will be the default primary custodian of the child, even if you nominate someone else. Overriding the surviving biological parent's rights is difficult and only happens in relatively extreme circumstances.

Part II: Special Issues for Minor Child Beneficiaries (The Money)

Because minors lack the legal capacity to sign contracts or manage investment accounts, they cannot directly receive substantial inherited assets. Your Will may direct assets into one of the following protective arrangements.

What May Happen Without a Plan? (The Costly Default)

When a minor child is entitled to assets (like life insurance or probate proceeds) and the estate plan does not adequately plan for them, the assets cannot be released.

• This forces the family into a Conservatorship proceeding. This is a court-supervised process where a Conservator (the person managing the money) must be formally appointed, file a bond, and submit annual financial accountings to the court until the child turns 18.

• This court process is costly, time-consuming, and provides the least flexibility for the family.

If you're dealing with forms or procedures, be aware that "guardian of the estate" is now called "conservator" in Washington State. The guardianship statutes have been repealed and replaced by the conservatorship statutes at RCW 11.130.

Option A: The Testamentary Trust (Maximum Control)

A Testamentary Trust is language built into your Will that creates a formal trust upon your death.

• Trustee: You appoint a Trustee to manage the funds.

• Custom Age: You can choose any distribution age (e.g., 25, 30, or in installments) and the Trustee operates with minimal court oversight.

• Flexibility: The Trustee can use the money for the child's education, health, and welfare over many years without seeking a judge's permission for every expense.

Option B: UTMA Custodianship (Simple and Cost-Effective)

The alternative to a formal trust is a custodianship under the Washington Uniform Transfers to Minors Act (UTMA).

• Custodian: You appoint a Custodian to manage the assets.

• Age Limit: A custodianship only lasts until the beneficiary is age 21, though your Will can specifically extend this age to 25 if it's set up properly. The funds are distributed outright at the final age.

• Administration: This is less expensive and involves less administrative burden than a trust, making it a great option for straightforward inheritances of cash and securities.

Fiduciary Duty is Critical

For any estate plan leaving assets to minor beneficiaries, you must nominate a responsible and trustworthy individual to the position of Trustee or Custodian. By accepting this role, they serve as a fiduciary to the beneficiary, meaning they are legally required to act in the child’s best financial interests.

Blocked Accounts

A fourth option would be to transfer the funds to a blocked account. However, this approach is generally not preferable because the funds will be transferred to the minor upon reaching the age of eighteen, similar to the conservatorship.

Final Thoughts

Planning an estate involving minor children is more complex than planning an estate with responsible adult beneficiaries. When minors are involved, it is especially important to seek the advice of a qualified estate planning attorney to structure the Guardian nomination and the financial management plan (Trust or UTMA) that best fits your family's unique goals and avoids the expensive, restrictive default court proceedings.

Note: This article is for informational purposes only and does not constitute legal advice. Estate planning involves complex legal issues that vary based on individual circumstances. Consult with a qualified Washington State estate planning attorney for advice specific to your situation.