Why Use a California Minor's Settlement Trust?

The ideal candidate for a Minor's Trust is an individual below the age of eighteen who needs an independent third-party trustee to protect his/her interests. The main purpose of a Minor's Trust is to protect a minor that may be vulnerable to financial abuse or lack the ability to spend funds in accordance with their best interests. The Trustee of a Minor's Trust screens disbursements to ensure that they make fiduciary sense.

General Rules of a California Minor's Settlement Trust

As Trustee, CPT Institute follows three general guidelines when administering a California Minor's Trust:


1. As Trustee, CPT Institute has a fiduciary duty to the Minor - A fiduciary duty is the highest standard one person can owe another under the law. By definition, this means CPT Institute is required to act in the best interests of the minor Trust Beneficiary.


2. All disbursements from the CA Minor's Trust must have a direct benefit to the Minor - Funds placed in a CA Minor's Trust must be used for the minor's primary benefit. Some examples include, but are not limited to, products or services related to the minor's health, education, maintenance, or support. PLEASE NOTE: A parent has a duty to provide for his/her minor in a manner that is consistent with his/her own standard of living when requesting disbursements related to shelter, food, and utilities (some exceptions apply).


3. All disbursement requests from the CA Minor's Trust require receipts and/or invoices to process - A Trustee is legally required to keep accurate records and a detailed history of all disbursements.

Should I Use a California Minor's Settlement Trust?

A Minor's Trust can be an excellent tool to protect minors who need financial protection from others or from themselves until they reach the age of majority. CPT Institute's California Minor's Trust can be terminated at age 18, and if the circumstances deem it appropriate, may continue until age 25.

A Minor's Trust is typically used when a minor already has some form of health insurance, but needs a low cost non-profit trustee for fiduciary oversight. As trustee, CPT Institute will ensure that all disbursements from the trust are in the best interests of the minor.

Disclaimer: This resource provided by CPT Institute is for informational purposes only and arc intended to be used as a non-legal guide prior to consultation with an attorney familiar with your specific legal situation. CPT Institute is not engaged in the practice of law or in rendering legal advice or counsel. No such legal advice or counseling is either expressly or impliedly intended. If you require legal advice, you should seek the services of an attorney. © 2021 CPT Institute All rights reserved.