Social Media Adds New Dimension to Children’s Trust

Aug 24

Are your kids tik tok famous yet?

While it’s funny to think how much things have changed since Facebook became a thing, social media has transformed not only the way we interact with one another, but has also opened new revenue streams for virtually everyone - even children - in what is being referred to as the creator economy.

What does this have to do with estate planning?

Two things:

Even if your not an influencer, digital rights to your social media accounts (think of all the family events, pictures, videos, and private conversations you’ve documented over the years) is becoming an increasingly important part of your legacy
If your kids or grandchildren are making money on any of these platforms, you should be aware of the laws and controls in place to protect them.

One such control is a children’s trust required under state law for child influencers. This can vary by state, but generally you’ll be required to sets up a trust that acts similar to a custodian account until the minor reaches age 18. In the meantime, a corporate fiduciary (rather than a family member or parent) serves as trustee of the trust.

An example of this can be found in a bill recently passed by Illinois effective in 2024.

Obviously, this law / type of children’s trust is geared more towards parents monetizing content that may include their child (for example Ryan’s World), but it does raise the question as to what would happen if any of your beneficiaries (or backup beneficiaries) are minors since a minor cannot legally inherit money outright.

If you’re curious about how a children trust might work in your family’s situation, you can schedule your free personal consultation using the link below.