Concept
A child can be the owner of assets, but until they come of age the law does not let them dispose of them — sign contracts, sell property, run a company. The gap between owning and being able to manage exists in every legal system, and each closes it in its own way: through court-supervised guardianship or through a trust. Until the child has grown up, decisions are made for them by an appointed adult or a purpose-built structure, and it is wiser to settle who that will be in advance.
Until they come of age, a child remains the owner of what they inherit, but a guardian, a custodian or a trust manages it on their behalf. Who to appoint, and on what terms the capital is released, are things a parent can decide themselves — in a will and a trust structure. Leave it undone and a court picks the guardian, while the capital passes into the heir's full control on the day they come of age.
Two Roles: Guardian and Manager
There are two distinct functions here. The guardian cares for the child themselves — where they live, how they are raised, who decides questions of health and schooling. The manager (a custodian of the estate, or a trustee) is responsible for the capital: holding assets, investing, releasing funds for maintenance. Combining both roles in one person is not required and is often unwise: a relative trusted with the upbringing does not always handle a portfolio or a stake in a business well. Splitting the roles also creates mutual control — the person who spends on the child and the person who holds the money are not the same.
Appointment in a Will
Appointing a guardian is one of the few things in succession planning that a parent controls entirely. The will names a guardian for the children, a manager for their property and, ideally, backup candidates in case the first cannot take the role. In common-law countries this is done directly in the will. Without such a direction a court will determine the guardian on its own criteria, and a match with the parents' wishes is not guaranteed.
Trust for Children
For meaningful capital the classic answer is a discretionary trust or a private foundation for the children. A professional trustee holds and invests the assets, and payouts follow the settlor's rules: for education and maintenance, then in shares as set ages are reached — for example part at 21, part at 25, the remainder at 30. This order protects the capital from rash spending and third-party claims, and management does not depend on whether the heir has matured. A protector helps strengthen oversight of the trustee.
How It Works Across Jurisdictions
In civil-law countries a child inherits directly, and until they come of age their property is managed by a guardian or custodian under state supervision. In Russia, guardianship (opeka) is established over children under 14 and custodianship (popechitelstvo) from 14 to 18; a teenager aged 14–18 already manages their own earnings and stipend, but not inherited capital. Any transaction that reduces the ward's property — a sale, gift, pledge or division — requires the prior consent of the guardianship authority (article 37 of the Civil Code). At 18, control of the assets passes to the heir themselves.
Common law relies on trusts and custodianship. In the US, small sums are passed through a custodial account under UGMA or UTMA: under UGMA access opens at 18, under UTMA usually at 21, and in some states the age can be pushed to 25 (in Wyoming, to 30). For large capital there is the 2503(c) minor's trust, under which the heir may take everything at 21, or a longer discretionary trust with no fixed payout date.
In England a parent appoints a guardian directly in the will — under section 5 of the Children Act 1989 — while children's capital is more often held in a trust with a favourable inheritance tax regime. A bereaved minor's trust (section 71A IHTA 1984) has the child receive the assets no later than 18, and an 18-to-25 trust (section 71D) pushes that moment to 25 at a moderate tax cost. Both can be set up by a deceased parent's will, and a bereaved minor's trust also arises automatically when a minor inherits from a parent on intestacy (the statutory trusts under sections 46–47 of the Administration of Estates Act 1925).
Common Mistakes
A typical mistake is to appoint a guardian for the child but forget the manager of the capital (or the reverse). Leaving a large sum directly is risky too: at 18 or 21 the heir receives it in full and unprepared. People often overlook a backup guardian, and also payouts under life insurance and pension plans — if these go straight to a minor, the money again falls under court control, so it is wiser to name a trust as the beneficiary. Finally, a plan tuned in one country often falls apart when the family relocates.
The diagram below shows how the two branches separate: the will names a guardian for the child and creates a trust for the capital, which a trustee manages under a protector's oversight.
For a substantial estate the working setup is assembled from several elements: a guardian named in the will is responsible for the child; a discretionary trust or foundation holds and invests the capital; payouts are tied to ages and events — education, then tranches at 21, 25 and 30. It is managed by a professional trustee or an in-house Private Trust Company, with a protector providing oversight. Arrangements within the family are set down in a family charter, or in Russia an inheritance contract. How these elements assemble into one construction is set out in the family perimeter map.
Eight Countries Side by Side
The three systems described above are only part of the map. The table adds Germany, France, Switzerland, the UAE and Singapore and puts all eight on the same five questions: when the child takes control, whether a parent can name the guardian by will, who supervises the child's property, whether a parent can route capital past the guardian, and whether the country applies the 1996 Hague Convention.
| Country | Age of majority | Guardian named by the parent | Who supervises the child's property | Routing capital past the guardian | Hague 1996 |
|---|---|---|---|---|---|
| Russia | 18 | By a parent's application to the guardianship authority | Guardianship authority; consent for any disposal (art. 37 Civil Code) | Trust management of the estate (art. 1173); personal or hereditary fund | Party (1 June 2013) |
| England and Wales | 18 | Yes, by will (s. 5 Children Act 1989) | No routine supervision where the capital sits in a trust | Trust by will: bereaved minor's (s. 71A IHTA) or 18-to-25 (s. 71D) | Party (1 November 2012) |
| United States | 18 in most states; UTMA custody usually to 21 | Yes, under state law, confirmed by the court | Probate court for a guardianship of the estate; none for UTMA or a trust | UTMA account, 2503(c) trust, discretionary trust | Signed 2010, not ratified |
| Germany | 18 | Yes, by will (§ 1782 BGB) | Family court; approval for major transactions | The testator can exclude the parents from administering inherited property (§ 1638 BGB) and appoint an executor | Party (1 January 2011) |
| France | 18 | The last surviving parent may choose the tuteur by will (art. 403 Civil Code) | Juge des tutelles, family council | A gift or legacy on condition that a third party administers it (art. 384) | Party (1 February 2011) |
| Switzerland | 18 | Parents' wishes weighed by the child-protection authority (KESB) | KESB | Executor of the will; a family foundation limited to education and support (art. 335 Civil Code) | Party (1 July 2009) |
| UAE | — | Non-Muslims: in a registered DIFC or Abu Dhabi will | The court | A DIFC or ADGM foundation or trust | Not a party |
| Singapore | 21; capacity to contract from 18 | Yes, by will (Guardianship of Infants Act) | The court, on application | Trust by will | Not a party |
The table splits the eight into two ways of protecting a child's money. In the civil-law systems — Russia, Germany, France, Switzerland — a state authority stands behind the guardian and must approve every serious transaction, which protects the capital from the guardian but also freezes it: a share in a business or a portfolio cannot be actively managed through consents. Each of them therefore offers an exit, and the exit is the testator's: the German § 1638 and French art. 384 let the will take inherited property out of parental or guardian administration and hand it to a named person. In England, the United States and Singapore the protection sits in the trust deed rather than with an authority, and the court appears only when no trust was made.
The Hague column decides what happens when the family moves. Among the eight, Russia, the United Kingdom, Germany, France and Switzerland apply the 1996 Convention, so a guardianship measure taken where the child lives is recognised in the others; the United States, the UAE and Singapore do not, and a guardian appointed at home may have to be confirmed again there. The Convention covers the child's person and property but not trusts or succession, which is why the trust structure is checked separately against recognition of foreign trusts and the choice of jurisdiction in the trust jurisdictions map. For adults who lose capacity the parallel map is incapacity planning.
Profile → set-up
| Family | Risk if nothing is done | Set-up |
|---|---|---|
| Resident in Germany or France, business stake in the estate | Court approval for every decision on the stake | Will excluding guardian administration (§ 1638 BGB / art. 384) with a named administrator or executor |
| Resident in England | Capital vests at 18 | Testamentary guardian plus an 18-to-25 or discretionary trust |
| US assets, children abroad | Probate guardianship of the estate in the state | Revocable or discretionary trust holding the US assets; UTMA only for small sums |
| Family moving between Hague and non-Hague countries | A guardianship not recognised on arrival | Guardian named in the will of each country with assets; trust independent of the guardian |
| Non-Muslim family in Dubai | Court appoints under the default rules | Registered DIFC or Abu Dhabi will naming guardians |
Q/A
Can a parent stop the guardian from managing what the child inherits?
In several countries, yes, by will. German law lets a testator exclude the parents from administering property the child inherits (§ 1638 BGB), and French law does the same for property given or left on condition that a third party administers it (art. 384 Civil Code). In common-law countries the same result comes from leaving the capital to trustees rather than to the child directly.
Will a guardian appointed in one country be accepted in another?
Between states applying the 1996 Hague Convention — among them Russia, the United Kingdom, Germany, France, Switzerland, Italy and Spain — measures taken by the authorities of the child's habitual residence are recognised. The United States has signed but not ratified, and the UAE and Singapore are not parties, so there a guardian may need local confirmation or a local will naming the same person.
Are the child’s guardian and the manager of inherited assets the same role?
No. A guardian makes personal and care decisions for the child, while a trustee or other manager deals with assets under separate authority or instruments. The roles may be combined only where the applicable law permits it; appointing one person does not by itself give that person every power over the capital.
Does naming a guardian in a will prevent later court involvement?
No. The effect and timing of the appointment depend on local law and on whether another person with parental responsibility survives. For example, section 5 of the Children Act 1989 permits a testamentary appointment in England, but it takes effect only in the statutory circumstances and does not remove the court’s protective powers.
May a guardian freely sell real estate inherited by a child?
Usually not. The applicable law may require advance approval from an authority or court for a transaction that reduces the child’s property. In Russia, Civil Code Article 37 requires guardianship-authority consent for sales, pledges, divisions and similar disposals; foreign assets also require a situs and child-protection check.
Will the child receive the whole capital immediately at 18?
Not necessarily. An asset owned directly by the child comes under their control according to the applicable capacity rules, but a valid trust may retain and distribute capital under its own terms. In England, a bereaved minor’s trust vests no later than 18, while the 18-to-25 regime permits deferral to 25.
Does the 1996 Hague Convention recognise a trust for a child?
Not as a trust: Article 4 expressly excludes trusts and succession from the Convention’s scope. It coordinates protective measures concerning the child’s person and property, including guardianship and administration, usually through the authorities of habitual residence; covered measures are recognised under Article 23.