Minor’s trust is a trust with only one beneficiary, who is a minor. It is a trust whereby asset management is provided until a child reaches the age of majority. Upon reaching majority, the child has full use and control over the assets. The grantor of the trust cannot receive any income from the assets held in the trust. All undistributed income is taxed at trust rates, which are low. This type of trusts allows the grantor to control the time at which the minor gets access to the assets given to him or her.

Minor’s trusts are also known as 2503(C) trusts as the requirements for the trust are set forth in Internal Revenue Code (26 USCA) § 2503(c).