Douglass & Runger - February 2023

Can a Minor Receive an Inheritance? It’s Complicated.

Chocolate Pots de Creme

It’s a scenario that often keeps parents up at night: “How will my children be supported if something happens to me?” A desire to see their kids cared for inspires many parents of minor children to create an estate plan in the first place. But Tennessee considers minors of any age incapable of managing their assets. So, what happens to the money you’ve carefully laid aside for your minor children if you die before your children reach the age of 18? First, let us remind you why all parents should have an estate plan. An estate plan, whether it is a simple estate plan with a Will or a more complex estate plan with a Trust, allows you to nominate a guardian for your children if both parents pass away. Just as crucially, an estate plan allows you to create the terms and conditions under which your assets will be used to care for your children. Failing to create an estate plan will produce less-than-ideal results in the event of your death or incapacitation, with the Court appointing a guardian on your behalf if you are incapacitated and appointing a guardian for your minor children in the event you die before your children reach the age of majority. In most cases, the child’s guardian and property guardian are the same person, but exceptions exist. Children also cannot receive funds directly as the beneficiary of a life insurance policy, IRA, or investment account, so these assets will also fall under the purview of the property guardian. But by creating an estate plan, parents have much more control over who will care for their minor child’s financial assets. For example, parents can choose to appoint a property guardian (Guardian of the Estate) or a Trustee to hold assets for their minor children, in addition to a guardian who will be charged with the day-to-day responsibilities of caring for their children (Guardian over the Person) in their will. The Guardian of the Estate or Trustee must follow specific rules when managing, spending, and selling the child’s assets. Parents can also arrange custodianship under the Uniform Transfers to Minors Act. The custodian can manage, spend, and invest the assets without approval, so long as they act honestly and in good faith. A Trust provides the most protection over a parent’s wishes. It allows them to specify how the funds can and can’t be used throughout their kids’ childhoods and when and how their children will receive ownership of the funds in adulthood. A Trust also protects the children’s inheritance from creditors or even their spouses in the event of a divorce.

Inspired by FoodNetwork.com

Impress your valentine with a chilly chocolate treat! This smooth custard is easy to make and the perfect dessert to end a romantic night at home.

INGREDIENTS • 9 oz high-quality semisweet chocolate, chopped • 1 1/2 cups whole milk • 1 1/2 cups heavy cream, divided • 6 large egg yolks

• 5 tbsp granulated sugar (add an extra tbsp if using bitter chocolate) • 1/4 tsp salt • 1 tbsp powdered sugar

DIRECTIONS 1. Place chopped chocolate into a blender. 2. In a heavy-bottomed medium saucepan, whisk the milk, 1 cup of cream, egg yolks, granulated sugar, and salt over medium heat. Cook, constantly stirring with a spatula until the mixture is almost boiling, 5–6 minutes. Immediately pour the milk mixture over the chocolate in the blender. 3. Cover and blend until smooth. 4. Divide the mixture among ramekins or small cups and refrigerate until set (about 2 hours). 5. Whip the remaining 1/2 cup cream and the powdered sugar with a mixer until soft peaks form. 6. Top chilled pots de creme with whipped cream and serve. INSPIRATION “Love is the magician that pulls man out of

Every circumstance is different, but there’s much to consider when naming children as beneficiaries or heirs to your assets. Be sure to discuss your options with one of our experienced estate planning attorneys by calling us at 901-388-5805 to schedule a strategy session, so you can make the best choice for your family.

his own hat.” —Ben Hecht

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