Guardianship to a Trust – Protecting a Minor’s Inherited Assets in Ohio

In Ohio, if a minor inherits or receives equal to or more than $25,000, the law requires oversight of those assets, typically through a guardianship, custodial account, or trust. Many people believe that when a guardianship is in place and a minor turns 18, the minor automatically receives full control over the assets in question.

A newly-minted 18 year old managing $25,000 or more is rarely a recipe for success.

That said, Ohio offers a solution: the minor trust. Under Ohio Revised Code Section 2111.182, a court can establish a statutory minor trust that lasts until the minor (or young adult) turns 25, providing a structured way to manage their assets during the critical years of young adulthood. 

READ MORE: Guardianship of Minors – The Basics

A minor trust works similarly to a guardianship but offers a bit more flexibility. It is managed by a trustee and overseen by the probate court, ensuring that the assets are used responsibly for the minor’s needs, such as education, healthcare, and support. The trust can restrict the minor’s access to funds, preventing them from mismanaging their assets during a developmental age. This added layer of protection can help ensure that the money is available for important life expenses while keeping it safe from reckless spending. 

READ MORE: Preventing Trust Disputes – Key Considerations

This minor trust should not be used as a planning tool but rather as a solution after a minor has already inherited or received assets. If the guardian—or another interested party—wants continued oversight of the assets after the minor turns 18, the statutory minor trust is an excellent option. It ensures that the assets remain protected and are managed responsibly until the minor reaches age 25, providing an extra layer of security during those crucial early adult years.