Question:
Property inherited by a minor normally does not go directly to the minor but is managed by an adult. In my state, the age of majority is 18. My beneficiary lives in Nebraska where age of majority is 19. If I die and my beneficiary is age 18, my state regards him as an adult, but Nebraska regards him as a minor. A will is normally governed by decedent’s state of residence. But for a minor beneficiary, it’s not clear if this always applies.
QUESTION 1: For distributions from my will, am I correct in assuming the definition of minor in my beneficiary’s state of residence will apply?
QUESTION 2: Because the definition of minor varies among states, when describing distribution options in my will, rather than saying “if beneficiary is a minor” would it be suitable and more clear to say “if beneficiary is under age of majority in their state of residence”?
Response:
Interesting question. It merges two issues, whether the personal representative of the estate can distribute funds or property to a minor and whether the recipient can deposit or negotiate the check. The estate can always issue a check to any recipient no matter their age, but minors typically can’t open a bank account without a parent or co-guardian as co-signer.
So if you were to die while your beneficiary was age 18, your personal representative could send him a check for his share of the estate. If he does not already have a custodial or co-owner account set up in Nebraska, he would have to have a parent or co-guardian open one with him to deposit the check.
In the alternative, if he does not have a cooperative “adult” to help out, he should be able to open an on-line account with an institution that is chartered in a state that has an age-18 majority. Or the personal representative could wait a few months to sent out the check until he’s had his 19th birthday.
I don’t think you need to make any provision for this in your will.
