What Happens to Your Child’s (or Grandchild’s) Inheritance Without a Trust
If something happened to you tomorrow, how would your child’s or grandchild’s inheritance be handled? In Ohio, if a minor inherits assets without a trust in place, the process is dictated by state law — and the result may be very different from what you’d expect.
Ohio’s Rules for Minor Inheritances
Under Ohio law, minors cannot directly own inherited property. If they receive an inheritance — whether from a parent, grandparent, or other relative — the funds are typically placed in a Uniform Transfers to Minors Act (UTMA) account.
A custodian manages the account until the child reaches the “age of majority,” which is 18 in Ohio unless you specify a later age up to 21 in the estate documents. On that birthday, the child receives full control of the entire amount.
The law does not require that the funds be used for education, a home, or any other long-term need. Once they turn 18 (or 21, if designated), they can use the money however they choose — whether that’s paying tuition or spending it in a few months.
Why Grandparents Should Consider This Too
Even if your children are adults, your plan should account for the possibility that a minor grandchild could inherit from you. Without a trust, the same Ohio UTMA rules apply, and a large sum could be turned over to them outright at 18 or 21.
How a Trust Gives You More Control in Ohio
Creating a revocable living trust allows you to set the terms for how, when, and for what purposes an inheritance is used. In Ohio, a trust can:
Appoint a trustee you trust to manage and distribute funds responsibly
Delay full distribution until a later age (25, 30, or even older)
Allow for earlier access to funds for education, health care, or other important needs
Use a discretionary trust structure, so the trustee decides when distributions are appropriate, protecting against impulsive spending, outside influences, or even creditors
The Bottom Line for Ohio Families
Without a trust, Ohio law will place the inheritance into a UTMA account and hand full control to your child or grandchild at 18 or 21 — ready or not. With a trust, you make the rules, ensuring the money is used in a way that truly supports their future.
If you have minor children or grandchildren who could inherit from you, now is the time to put a trust in place. We can help you create a plan that works within Ohio’s laws while protecting your loved ones and your legacy.
