Legal Question in Wills and Trusts in California
minimum age for income distributions from trust
in the state of california is there a minimum age to have distributable net income passed to a minor child when the trust document is silent on any age for distribution of income. many trusts use the age of 18 to distribute the income and before this age the trust pays the income taxes. the trust in question is using the age of 14 because of kiddie tax rules to pass the income to the minor but the trust is silent on any specific age
2 Answers from Attorneys
Re: minimum age for income distributions from trust
There is no statutory minimum age to distribute funds to a minor. If the trust is silent about age it's probably discretionary. Not unusual to make distributions after the age of 14 to minimize the taxes between the minor and the trust. Kiddie tax doesn't apply after 14. Of course, non-tax considerations should be considered. The money could be distributed to a custodial account and elect to have the custodial account distributable at age 21 when the account is set up.
Re: minimum age for income distributions from trust
The age of majority in California is 18 except to drink alcohalic beverages. Any sizeable amount of money given to a child might trigger the requirement to go to the court and seek a guardian or conservator to handle the child's money. If the successor trustee distributes the money too early and the child losses the money. The successor trustee could be held financially liable.
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