What provision can be made to hold and manage assets for minor children and grandchildren?
As already explained, because minors (children and grandchildren) are protected by the Civil Code, there is no standard provisions allowing holding and managing assets for them.
The trust remains a very efficient tool to achieve the protection of minors despite the caveat already explained in § 22.
Minors can own assets under Italian law. However, in such a case the law generally provides that the parents have the right of usufruct over such assets and that the income of the usufruct holder must be used for the maintenance of the family and for the education of the minor.
The assets of minors are usually managed by their parents who are the natural guardians. If necessary, trusts may be created for minors under a will.
Kindly see notes in question 17 in regards to “inheritance trust” and executors. Furthermore, according to the Greek Civil Code, living parents may –solely during their lifetime- withhold the real property’s usufruct or bare ownership right.
According to German law minors can hold assets regardless of their age. However, it is their parents who manage their assets on their behalf. Though, in certain cases a legal guardian needs to be appointed, for example when at least one parent or a close relative is a party of a contract that does not only provide legal benefits for the minor. Furthermore, if a contract establishes an economically considerable obligation of the minor (e.g. sale or purchase of real property, of business or shares) it has to be approved by the family court.
In case of inheritance the testator can name in his Will a person other than the minor’s parents to administer those assets that the minor will receive by way of succession. Instead the testator may appoint an executor for his estate who would manage the assets for minors until they reach a certain age.
A civil/family partnership (cf. question 18) or a private foundation (cf. question 26) can be used as structures to hold and manage assets for (grand)children.
When assets are donated to (grand)children, an administrator can be appointed to protect the children and administer the assets, e.g. until they reach a certain age. The same goes for bequests made in a will.
British Virgin Islands
Such provision is generally made by establishing a BVI trust which includes appropriately drafted terms.
Parents in UAE are advised to assign legal guardians for minor children, to hold and manage assets on behalf of a child until they reach the age of majority (21), or earlier if deemed appropriate. Guardians may be either interim and/or permanent, and the most appropriate mechanism in which to assign guardians is through provisions in a Will.
In addition to the tax and management advantages in relation to trusts, it should be noted that New Zealand trusts do not require probate and can provide extensive protective and guardianship provisions; the Trustee Act 1995 provides for special cases for the administration for spendthrift or special needs beneficiaries. Great flexibility is provided by New Zealand trusts in terms of distribution of income and capital to beneficiaries over the perpetuity period, and the capitalization and accumulation of income.
The management of a minor’s property is generally entrusted by law to his or her parents. This is known as the legal administration of a minor’s assets.
There is, however, an important exception to this principle. The Monegasque law allows any person to exclude from the legal administration by the parents the assets that he or she donates or bequests to a minor, provided that they are administered by a third party
designated by Will or deed of donation.