Trusts for Minor Children

If you have children, you already know you would do anything to protect them. But have you thought about what happens to your money and property if something happens to you before they grow up? A trust for minor children is one of the most important tools in estate planning. It lets you decide who manages your assets, how those assets are used, and when your children receive them. At Slowik Estate Planning in Atlanta, Georgia, we help parents and grandparents build plans that protect the people they love most.

Table of Contents

• Why Minor Children Need a Trust in Georgia
• Types of Trusts for Minor Children Under Georgia Law
• Choosing a Trustee for Your Children’s Trust
• The Georgia Transfers to Minors Act vs. a Trust: What Is the Difference?
• Tax Considerations and Asset Protection in Trusts for Minor Children
• FAQs About Trusts for Minor Children in Atlanta, Georgia

Why Minor Children Need a Trust in Georgia

Here is something most parents do not know. Under Georgia law, a minor child cannot legally own or manage significant assets on their own. If you leave money or property directly to a child under 18, a court will likely appoint a conservator to manage those assets. That process costs time, money, and takes control out of your hands. A properly drafted trust avoids all of that.

Georgia’s probate courts handle cases involving minor children regularly. Under O.C.G.A. § 53-3-8, when a parent dies and leaves minor children, the probate court must specify the portion of the estate going to each minor child. If the decedent leaves a minor child or minor children, the probate court shall specify the portion going to the minor child or minor children, and the portion so specified shall vest in that child or those children. Without a trust in place, this process can be slow, public, and costly.

A trust for minor children puts you in the driver’s seat. You choose who manages the money. You decide what it can be used for. You set the age at which your child receives full control. Think about it this way: would you want your 18-year-old to receive a large sum of money all at once? Most parents would say no. A trust lets you delay that distribution to age 25, 30, or even older. That kind of control is only possible with a properly written trust document.

Georgia also recognizes the serious responsibility that comes with managing assets for a minor. As an estate planning attorney in Atlanta, Slowik Estate Planning works with families across the greater Atlanta area to create trust documents that are legally sound and built around your family’s real needs. Every family is different, and your plan should reflect that.

Types of Trusts for Minor Children Under Georgia Law

Georgia law gives you several options when it comes to setting up a trust for a minor child. The right choice depends on your goals, your assets, and your family situation. Understanding the basics of each option helps you make a smart decision.

The most common option is a testamentary trust. This type of trust is created inside your will and takes effect when you die. It is governed by the Revised Georgia Trust Code of 2010, found at O.C.G.A. Title 53, Chapter 12. Under Article 2 of that chapter, an express trust requires a clear intent to create a trust, a definite beneficiary, a trustee with duties to perform, and trust property. A testamentary trust checks all of those boxes and gives you full control over how your estate is managed for your children after you are gone.

Another option is a revocable living trust. You create this trust while you are alive and can change it at any time. Under O.C.G.A. § 53-12-40 through § 53-12-45, a settlor may revoke or modify a revocable trust during their lifetime. This type of trust avoids probate entirely, which means your children get access to assets faster and with less court involvement. It also keeps your financial matters private.

Some families also use an irrevocable trust, which cannot be changed once it is signed. These trusts offer strong protection from creditors and can have tax benefits. Under O.C.G.A. § 53-12-80 through § 53-12-83, Georgia law also allows for spendthrift trusts, which prevent a beneficiary from assigning their interest in the trust and protect trust assets from the beneficiary’s creditors. This can be especially valuable if you want to make sure your child’s inheritance is not lost to debt or poor decisions down the road.

If your family has international ties or assets in multiple countries, you may also need to think about how your trust works across borders. Slowik Estate Planning handles international estate planning for families with global assets and can help structure your trust accordingly.

Choosing a Trustee for Your Children’s Trust

Picking the right trustee may be the most important decision you make when setting up a trust for minor children. The trustee manages the assets, makes distribution decisions, and is legally responsible for acting in your children’s best interests. This is not a job to hand out casually.

Under O.C.G.A. § 53-12-200 through § 53-12-221 (Article 11 of the Revised Georgia Trust Code), trustees have serious legal duties. These include the duty of loyalty, the duty to act prudently, the duty to keep accurate records, and the duty to keep beneficiaries informed. A trustee who fails in these duties can be held liable for breach of trust under O.C.G.A. § 53-12-300 through § 53-12-308.

So who should you name? Many parents choose a trusted family member or close friend. This can work well, but it also comes with risks. Managing trust assets takes time, financial knowledge, and the ability to make tough decisions. If your estate is large or your financial situation is complex, a professional trustee or trust company may be a better fit. Georgia law also allows you to name co-trustees, pairing a family member with a professional to balance personal knowledge with financial skill.

You should also name a successor trustee. Life is unpredictable, and your first choice may not be available when the time comes. Under O.C.G.A. § 53-12-200 through § 53-12-221, the trust document can outline a clear process for trustee succession, so there is never a gap in management.

Georgia law also allows for a Trust Director under O.C.G.A. § 53-12-500 through § 53-12-506. A trust director can hold specific powers over the trust, such as the power to direct investments or make distribution decisions, separate from the trustee. This adds another layer of flexibility for families who want checks and balances built into their plan.

At Slowik Estate Planning, located in Atlanta, Georgia, we walk you through all of these choices and help you build a trustee structure that makes sense for your family. Reach out to us today to get started.

The Georgia Transfers to Minors Act vs. a Trust: What Is the Difference?

You may have heard of a UTMA account, which stands for Uniform Transfers to Minors Act. Georgia adopted its own version of this law, known as the Georgia Transfers to Minors Act, found at O.C.G.A. Title 44, Chapter 5, Article 5. It is a simpler way to transfer assets to a minor, but it is not the same as a trust, and it has some important limitations you should know about.

Under the Georgia Transfers to Minors Act, a custodian manages property on behalf of a minor. On petition of an interested person or the minor if the minor has attained the age of 14 years, the court may order the custodian to deliver or pay to the minor or expend for the minor’s benefit so much of the custodial property as the court considers advisable for the use and benefit of the minor. The custodian has broad authority to use the property for the minor’s support, education, and general benefit.

Here is the big limitation. The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor’s estate upon the earliest of: the minor’s attainment of 21 years of age with respect to custodial property transferred under Code Section 44-5-114 or 44-5-115; the minor’s attainment of majority under the laws of this state other than this article with respect to custodial property transferred under Code Section 44-5-116 or 44-5-117. In other words, the child gets full control of the money at 21, or in some cases at 18. You cannot delay that distribution under a UTMA account.

A trust, by contrast, gives you complete flexibility over when and how distributions happen. You can set milestones, like graduating college or reaching age 30. You can allow the trustee to use discretion based on your child’s needs at any given time. A UTMA account is simple and inexpensive to set up, but it does not offer the same level of control or protection as a properly drafted trust.

For families with significant assets or children who may need long-term guidance, a trust is almost always the better option. An Atlanta estate planning lawyer at Slowik Estate Planning can review your situation and help you decide which tool is right for you, or whether a combination of both makes sense.

Tax Considerations and Asset Protection in Trusts for Minor Children

When you set up a trust for your children, taxes matter. The structure of your trust affects how income is taxed, whether your estate owes federal estate tax, and whether your children’s inheritance is protected from outside claims. Getting this right from the start saves your family money and headaches later.

One important tax issue involves the step-up in basis rules under Internal Revenue Code § 1014. Under IRS Rev. Rul. 2023-2, assets held in an irrevocable grantor trust that are not included in the grantor’s gross estate for federal estate tax purposes do not receive a step-up in basis at the grantor’s death. This means your children could owe capital gains tax on the growth of those assets when they eventually sell them. This is a real planning issue that needs to be addressed when drafting your trust. The type of trust you use, and how it is structured, directly affects this outcome.

Federal estate tax is another concern for higher-net-worth families. For 2026, the federal estate tax exemption is set to drop significantly from recent years due to the scheduled sunset of provisions from the Tax Cuts and Jobs Act of 2017. This makes proactive trust planning more important than ever. Working with Slowik Estate Planning on estate tax planning in Atlanta, Georgia can help you take advantage of current exemption levels before they change.

Asset protection is also a key benefit of certain trust structures. Under O.C.G.A. § 53-12-80 through § 53-12-83, Georgia’s spendthrift trust provisions protect trust assets from a beneficiary’s creditors. This means that if your child goes through a divorce, faces a lawsuit, or accumulates debt, the assets inside a properly structured trust are shielded. A dedicated asset protection lawyer at Slowik Estate Planning can help you build these protections directly into your trust document.

The bottom line is that a trust for minor children is not just about who gets what. It is about making sure the assets you leave behind are protected, managed wisely, and transferred in the most tax-efficient way possible. Slowik Estate Planning serves families throughout Atlanta, Georgia, and we are here to help you build a plan that works on every level. Contact us today to schedule a consultation.

FAQs About Trusts for Minor Children in Atlanta, Georgia

At what age does a child receive assets from a trust in Georgia?

That depends entirely on how the trust is written. Unlike a UTMA account, which must transfer assets to the child at age 21 (or 18 in some cases) under O.C.G.A. § 44-5-130, a trust lets you set any age or milestone you choose. Many parents set distributions at age 25, 30, or in stages, such as a portion at 25 and the remainder at 30. Your trust document controls this completely, which is one of the biggest advantages of using a trust over a simple custodial account.

What happens if I die without a trust and my children are minors?

If you die without a trust and your children are under 18, Georgia law requires a court-appointed conservator to manage any assets they inherit. This process involves ongoing court oversight, legal fees, and regular accounting requirements. The probate court will oversee how funds are spent until each child reaches adulthood. At that point, the child receives full control of whatever is left, regardless of whether they are financially ready. A trust avoids all of this and puts you in control instead of the court.

Can I name a family member as trustee of my children’s trust?

Yes, you can name a family member as trustee. However, the role comes with real legal responsibilities under O.C.G.A. § 53-12-200 through § 53-12-221, including duties of loyalty, prudent management, and regular accounting. If the trust holds significant assets, you may want to consider a professional trustee or co-trustee arrangement. Slowik Estate Planning can help you think through the right structure for your family and make sure your trustee has clear guidance in the trust document itself.

Does a trust for minor children avoid probate in Georgia?

A revocable living trust avoids probate because the assets are held in the trust’s name, not your personal name, at the time of your death. A testamentary trust, which is created inside your will, does go through probate because it takes effect only after your will is admitted to probate court. Both types of trusts give you control over how assets are managed for your children, but a revocable living trust offers the added benefit of keeping the process private and moving faster than the probate process allows.

How do I get started setting up a trust for my minor children in Atlanta?

The first step is to speak with an estate planning attorney who understands Georgia trust law. At Slowik Estate Planning in Atlanta, Georgia, we review your assets, your family situation, and your goals to recommend the right trust structure for you. We draft the trust document, help you choose a trustee, and make sure the trust is properly funded so it works the way you intend. Contact Slowik Estate Planning today to schedule your consultation and take the first step toward protecting your children’s future.

More Resources About Trusts for Children and Young Adults

• Staggered Distributions vs Lifetime Trusts for Children
• Incentive Trusts
• College Planning Trusts
• Trustee Instructions Values Letters and Guardrails