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.
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 are created under the will of the deceased parent.
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.
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.
🧭 Check your case: Inheritance Navigator — which law applies, where forced heirship and taxes come into play.
This material is for informational purposes and does not constitute individual legal advice.