Law Articles And Legal Issues

Attorney to Give Tips on Leaving Money to a Minor

Los Angeles (PRWEB) October 8, 2008 -- Leaving a gift of money to minors can raise a multitude of legal issues for the recipient. Mina N. Sirkin, a Los Angeles, California, family wealth lawyer, author of the blog MomsRules.com (http://www.momsrules.com/), Musings of a Mom About Kids and Money, offers the following money tips and information on how to best leave a gift of money to a minor.

"If you are leaving money or inheritance to a minor, there are many variables to consider when leaving such a gift (http://www.momsrules.com/) to children or grandchildren," Sirkin says. "Knowledge about the different ways of leaving money to a minor will insure that he or she safely receives his or her gift and can avoid court proceedings and lots of monetary cost."

Sirkin notes that there are some significant differences between leaving an inheritance in a guardianship account and leaving an inheritance (http://familywealthlawyers.typepad.com/momsrules/2008/09/custodial-accou.html) in a custodial account.

"Knowing the differences between a guardianship account and a custodial account, and how to use them appropriately can save a lot of headache in court, as well as money by avoiding probate or guardianship proceedings," Sirkin says.

When it comes to guardianship accounts, a Guardian must be court appointed. A bond needs to be set for the guardian or waived by the parent of the minor in a will or other instrument. A Guardian is obligated to file an annual accounting in the court. A guardian who is a parent of the child cannot use the money of the guardianship to discharge his/her duty to support his/her kid or other kids in the family.

"What this means is that if there is an expense that the parent guardian is legally obligated to pay, it has to paid from his earnings, and not from the guardianship assets," Sirkin says. For example, normal educational needs of the minor have to be paid for from the earnings of the parent guardian, not from the guardianship accounts. However, a parent guardian can apply to the court to ask whether the court will authorize him to pay for unusual educational expenses of the minor from the minor's funds. In most cases, the court orders most of the assets of the minor to be placed in blocked accounts. The guardian is not allowed to use the guardianship account for his own personal use. The guardianship must end upon the minor reaching 18 years of age. The guardian can be held responsible to the minor for an extended period even after the guardianship ends.

As compared to guardianship accounts, with custodial accounts (UTMA or CUTMA accounts), a custodian of the minor does not necessarily need to be appointed by the court and the custodial assets can be transferred to the custodian outside of court. In California, a custodial account can be established in several ways. For example, a grandparent can nominate a custodian of the funds of the minor in a separate document, such as a nomination instrument, or simply on a stock account as a beneficiary. The designation has to be specific and must state that X is acting as the custodian for X (minor). In California, the custodial account distribution age can be arranged ranging from 18 to 21. Custodial accounts do not change the primary parental legal obligation to support the minor. The minor does have a right to request an accounting at the end of the term of the custodianship.

"With a custodial account, grandma or mom can designate different custodians for different accounts for the benefit of the same minor," Sirkin says. "The custodian cannot use the minor's funds for the custodian's personal use, but the account is not blocked. There is no requirement of a formal accounting in court unless the minor demands it."

Sirkin cautions that there are cases where a custodial account should not be used, such as when the minor has a disability or special need. In fact, the best way to leave money to a minor is in a minor's trust. A minor's trust can be configured either for a typical child, or for a spcial needs child with a special needs provisions. A minor's trust can be fllexible in that the trust creator can set the time of distribution, even long after reaching the age of majority.

Depending on the amount of the gift or inheritance (http://www.momsrules.com/), Sirkin recommends that anyone leaving money to a minor should always consult an attorney to discuss their specific situation, as all the legal and tax ramification of a gift should be discussed with a lawyer before making a choice.

Mina N. Sirkin is a family wealth lawyer and a TV legal expert in Los Angeles, California. Ms. Sirkin is a Board Certified Specialist in Estate Planning, Probate and Trust Law by the Board of Legal Specialization of the State Bar of California.

For more information on gifts to minors, please contact: phone 818-340-4479.

###

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Other Law Sites
Search The Internet For Other Law Sites

Law Books
Search For Law Books At FindaBook.com

CalBizCentral Announces Booklets to Help Businesses Navigate State, Federal Employment Laws, Reduce Legal Risk
CalChamber's CalBizCentral 'What Every Manager Needs to Know About' series provides training managers need to comply with confusing laws.

Tax Attorney Site Answering More Questions on New Tax Laws
TaxAttornyHelp.com, an online tax law attorney service provider, has answers to questions on new tax laws that affect filers in 2008.

Los Angeles Divorce Attorneys, The Family Law Company, Opens a New Office in Beverly Hills
Los Angeles family law attorney and founder of The Family Law Company Pamela Wright opens a new office in Beverly Hills. The Family Law Company offers high-quality legal services at affordable rates for divorce, paternity, child custody and child support actions because justice doesn't have to cost a fortune.

Understanding The Law...Criminal Law
The following Q&A's have been provided to help you better understand Criminal Law.

Copyright Infringement Cases Can Teach Us To Obey Copyright Laws
Copyright infringement cases can be both costly and time consuming. Considering copyright infringement is something that isn?t as easily defined as theft or speeding, there are numerous copyright infringement cases changing the way copyright law is viewed in the U.S. By reviewing a few of these copyright infringement cases, you can get a better idea of what is, and what is not, acceptable use of copyrighted works.

Fresno Family Law Attorney Says Collaborative Law Can Provide Smoother and More Affordable Divorce
Fresno family law attorney Erin Rhames-Childs says collaborative law can help people can reduce the conflict and cost of divorce litigation.

New Legal Guide to Divorce by Family Law Expert
A brand new legal guide to divorce, "Divorce and Separation Today", has been newly published by DragonCub. Far more useful than the average divorce guide, it delves into how the divorce courts operate as well as providing practical and sensible advice on emotional and other sensitive areas. It is an essential guide for anyone considering or going through divorce.

Pending Federal Law Threatens All Copyright Owners says the Hodgson Law Group
The Shawn Bentley Orphan Works Act of 2008 (S. 2913) "Orphan Works Act of 2008" (H.R. 5889) allows anyone to use a copyrighted work without first obtaining permission. The user can later claim that a diligent search was conducted but the owner could not be found in any later action for infringement. This new legislation will apply to all copyright owners whether or not the work was previously registered with the Copyright Office. The legislation threatens the rights of artists, photographers, composers, film makers, publishers, and visual artists says the Hodgson Law Group. The Copyright Office not only endorses this legislation, but also advocates further changes that go beyond the proposed statute in reducing copyright protection. T...

Kirsten Branigan Joins McDonald Law Group, LLC Adding Depth in Employment Law
Kirsten Branigan and Nancy McDonald join forces with a shared passion--advocating for advancement of women in the practice of law.

Divorce Lawyer Says Families Do Not Belong In The Court Of Law
Fresno divorce attorney Erin Rhames-Childs says that the court of law is no place to divorce. The courts are overworked and understaffed - leading to poor legal decisions that are not in the best interests of those involved. Collaborative divorce is a way for couples to divorce while maintaining their dignity, making decisions that truly are in the best interests of their children and preserving their finances. Collaborative divorce is quicker, cheaper, and better for maintaining functional relationships for after the divorce is over.

Legal Services of Labor Law Attorneys
Labor law attorneys deal with a broad range of labor issues mainly related to how employers treat employees, former employees and applicants for employment. This includes all the areas of the employer-employee relationship, negotiations, and the collective bargaining agreement.

Legal Resource Local-Attorneys Expands to Include Divorce Law
Local legal resource website Local-Attorneys has announced that it is expanding to cater to divorce law specialists and visitors in need of advice. Web users will be able to browse local law firms who specialize in every sort of legal vertical. Find the best advice and attorneys in the industry.

Elizabeth A. Kreitzer, Certified Family Law Specialist, Joins Klinedinst Family Law Group
The California-based law firm of Klinedinst PC has added Elizabeth A. Kreitzer, Certified Family Law Specialist, to its expanding Family Law practice group. Ms. Kreitzer's addition, combined with the strength of the firm's existing litigation teams, will help ensure that every client receives sophisticated, professional and compassionate representation, Ms. Kreitzer is the recipient of the Michael C. Shea Chair in 2005, and adds a wealth of family law knowledge to the department. She is experienced in working with sophisticated clients handle complex family law issues, including divorce, paternity and custody disputes, prenuptial agreements, adoption proceedings, and other family law matters.

Central Florida Family Law Lawyers Appel & Gaines Offers Creative and Collaborative Divorce Solutions
The lawyers at Appel & Gaines, LLP experience first hand their client's struggles with the emotionally challenging, destructive and costly process of divorce in Florida. Therefore, their attorneys frequently suggest to clients that they initiate a "collaborative" approach to resolving their family law issues.