A Sharpened Tool - delaying distribution to age 25 | Farah Roberts Ltd.
Delaying the Distribution of Property to a Young Person
A sharpened tool is available for those who want to delay the distribution of property to a beneficiary over age 21, but who do not want to incur the expense of setting up a Trust. While there are good reasons to set up a Trust, thanks to a change in Ohio law, a Trust is not the only way to delay distribution past 21.
In Ohio, if a beneficiary is under 18 at the time property is to be distributed, that property is paid to a court appointed Guardian. Management of the property in a Guardianship is under Court supervision. At age 18, the property in the Guardianship will be distributed to the beneficiary.
In our Wills, we said that if a beneficiary is under 21 at the time he or she is to receive property, the property is to be distributed to a Custodian under the Ohio Transfer to Minors Act. This would tie the property up until age 21. Usually, an 18 year old beneficiary is less mature than a 21 year old. We have yet to find a client who disagrees with us.
Under the change in Ohio law, with the proper language, the distribution of gift to a minor can be extended to age 25. At age 25, a beneficiary hopefully is more matured, and his or her college or other education is probably completed.
For property to be tied up until 25, the proper language must be in the Will.
If you would like to change your Will to take advantage of this change in the law, please contact us.
-Benjamin F. Farah