When you’re planning your estate in Texas, one of the most important questions to answer is:
“How will my minor children receive the property I leave behind?”

Because minors can’t legally own or manage property, the law requires an adult—or sometimes the court—to handle it for them. Without the right structure in place, your child’s inheritance could end up tied in red tape or handed to them outright at age 18, long before most young people are ready to manage substantial assets.

This article breaks down the primary methods Texans use to leave property to minor children, including the pros, cons, and the situations each method works best for.

Why Minors Can’t Receive Property Outright

Under Texas law, a minor cannot take legal title to property or manage inherited funds.  If a parent leaves assets directly to a child—or dies without a will—those assets typically cannot be released until the court appoints someone to manage them.

This is why intentional planning is essential. With the right structure, you—not the court—decide who manages your children’s money and how it’s used.

1. Guardianship of the Estate: What Happens When You Don’t Plan

If no mechanism exists to manage a minor’s inheritance, Texas courts must create a guardianship of the estate.

How It Works

• The court appoints a guardian (often a relative).
• The guardian must post a bond and file detailed annual accountings.
• The court oversees—and may limit—how money is spent.
• At age 18, the child receives all remaining funds outright.

Pros

• Court oversight ensures accountability.
• Ensures a responsible adult is managing the funds.

Cons

• Costly and time-consuming court process.
• Very little flexibility.
• Assets are released at age 18—far too young for most inheritances.

Best For

Situations where parents did not plan or the court must step in to protect the child’s property.

2. Testamentary Trusts: The Most Common and Flexible Approach

A testamentary trust is created inside your will and springs into existence after your death.

How It Works

• Your will specifies that a trustee will manage property for your children.
• The trustee can make distributions for health, education, maintenance, and support (the “HEMS” standard).
• You choose when the children receive full ownership—age 21, 25, 30, or in gradual percentages.
• The trust can continue long past age 18 if needed.

Pros

• High degree of control.
• No guardianship required.
• Protects children from mismanagement, creditors, and poor financial decisions.
• Simple to integrate into a modern will.

Cons

• Requires probate to activate the trust.
• Some trustee administrative duties apply.

Best For

Most Texas parents—especially those with minor children, blended families, or substantial life insurance.

3. Revocable Living Trusts: Probate Avoidance and Seamless Management

A revocable living trust lets you avoid probate, maintain privacy, and ensure continuous management if you become incapacitated.

How It Works

• You create and fund the trust during your lifetime.
• You serve as trustee; a successor takes over if you die or become incapacitated.
• The trust includes customized provisions for your minor children.
• Assets pass privately and smoothly—no court involvement.

Pros

• Avoids probate entirely.
• Provides continuity during incapacity.
• Flexible and customizable.
• Allows multigenerational or long-term asset protection.

Cons

• Requires upfront funding and maintenance.
• Slightly more complex than a simple will.

Best For

Families seeking privacy, probate avoidance, or sophisticated asset management.

4. UTMA Accounts: Simple and Inexpensive Transfers

The Texas Uniform Transfers to Minors Act (UTMA) allows a custodian to hold assets on behalf of a minor until they reach a designated age.

How It Works

• You appoint a custodian to administer the account.
• The custodian may spend funds for the minor’s benefit.
• All funds transfer to the child at age 21 (or 18 if chosen).

Pros

• Very easy to set up.
• No court supervision.
• Minimal administration.

Cons

• Must end at age 18 or 21—no exceptions.
• No ability to stage or restrict distributions.
• Asset exposure for financial-aid and creditor purposes.

Best For

Smaller inheritances and gifts, such as savings accounts or modest investment funds.

5. Choosing a Guardian of the Person (Separate From the Property)

A guardian of the person cares for the day-to-day upbringing of your child.
This role is separate from whoever manages the money.

Why This Matters

• Avoids family conflict over who will raise your children.
• Lets you choose a caregiver who may differ from your financial trustee.
• Provides stability and clarity during a difficult time.

Many parents choose:

• A financially savvy trustee to manage funds
• A nurturing guardian to raise the children

This split-role approach is both common and highly effective.

6. Using Trusts to Receive Life Insurance Proceeds

Life insurance is often the largest inheritance a minor child receives. Naming the child directly as beneficiary forces the insurance company to require a guardianship.

The Better Approach

Name a trust for the child’s benefit as the beneficiary of:

• Life insurance
• Retirement or brokerage accounts
• Group policies through employers

Why It Works

• Avoids guardianship.
• Ensures responsible long-term management.
• Allows staged or conditional distributions.

This is one of the simplest but most impactful estate-planning upgrades Texas parents can make.

Which Method Should You Choose?

Here is a quick comparison:

Your Goal	Best Method
Avoid probate	Revocable living trust
Protect large sums long-term	Testamentary or living trust
Keep it simple for smaller gifts	UTMA account
Avoid court involvement	Trust-based planning
Protect children from poor decisions	Trust with staged distributions

 

Final Thoughts

Leaving property to minor children in Texas requires more than just naming them in a will. Without intentional planning, your child’s inheritance may fall under court supervision—or worse, be handed to them with no guardrails at age 18.

A well-drafted trust—whether testamentary or part of a living trust—is the most effective and versatile way to protect your children and ensure your wishes are carried out with clarity and control.