The decision for minors is mainly taken by their parents. However, in matters of trust or estate, parents are not always in charge of making decisions for their children. Estate law had been safeguarding the interests of beneficiaries, whether they are adults or minors. If, for some reason, parents are unable to sign for their child’s estate, the court steps in to appoint a guardian.
Virtual Representation
The idea behind virtual representation is that an adult is designated to speak and make decisions on behalf of a minor trust beneficiary. The concept of virtual representations comes with many provisions to ensure that the minor’s interest is not harmed. You can find these provisions in the Uniform Trust Code (UTC), Uniform Probate Code (UPC), and state laws.
Virtual representation works wonders in favor of a minor beneficiary who gets the voice through an adult who has the legal capacity to form rational decisions.
Not only for minors, but virtual representation also holds valid for incapacitated adults, unborn children, unascertained beneficiaries, and adult beneficiaries that are nowhere to be located.
The Need for Virtual Representation
Without the appointment of a virtual representative, the court would have to designate a guardian to handle the minor’s account. The virtual representative or the court-appointed guardian becomes in charge of all the decisions, notifications, and communications related to the account whether or not the minor agrees.
The representative or conservator is obliged to work with the minor and explain to them the decisions that are being made on their behalf. The beneficiary, for instance, an incapacitated adult, does not necessarily have to comply with the representative’s decision and can terminate the relationship at any point.
Contact an Experienced Estate Planning Attorney
If you want further information or any help regarding virtual representatives, contact us right away. At Keystone Asset Protection and Estate Planning, we would be more than delighted to provide our services so that you can protect your assets and preserve your hard work.