Which Statement is True Regarding a Minor Beneficiary?

1. A minor beneficiary is a person who is under the age of 18.
2. A minor beneficiary cannot receive a distribution from a trust until they reach the age of 18.
3. A minor beneficiary can only receive a distribution from a trust if they have a legal guardian.
4. A minor beneficiary can choose to receive their distribution from a trust in one lump sum or in installments.

The correct answer is: 1. A minor beneficiary is a person who is under the age of 18.

Understanding Minor Beneficiaries

A minor beneficiary is a person who is under the age of 18. This means that they are not legally able to manage their own finances or make decisions about their own property. As a result, a minor beneficiary's assets are typically managed by a legal guardian, such as a parent or guardian.

Rights of Minor Beneficiaries

Minor beneficiaries have certain rights, including the right to:

• Receive a distribution from a trust
• Choose to receive their distribution from a trust in one lump sum or in installments
• Have their assets managed by a legal guardian
• Make decisions about their own property if they are emancipated

Responsibilities of Legal Guardians

Legal guardians have a responsibility to manage the assets of a minor beneficiary in a prudent manner. This includes:

• Investing the beneficiary's assets in a way that is likely to generate a return
• Paying the beneficiary's expenses
• Distributing the beneficiary's assets to them when they reach the age of 18

Conclusion

Minor beneficiaries have certain rights and responsibilities. It is important for legal guardians to be aware of these rights and responsibilities in order to properly manage the assets of a minor beneficiary.

Additional Information

• The Uniform Trust Code defines a minor beneficiary as a person who is under the age of 18.
• The Uniform Trust Code allows a minor beneficiary to receive a distribution from a trust if they are emancipated.
• The Uniform Trust Code allows a minor beneficiary to choose to receive their distribution from a trust in one lump sum or in installments.
• The Uniform Trust Code requires a legal guardian to manage the assets of a minor beneficiary in a prudent manner.

Tables

Sources

• Uniform Trust Code
• Restatement (Third) of Trusts