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Actress Hayden Panettiere died Aug. 16. Her daughter, Kaya, is “the sole heir entitled to the entirety of Hayden’s probate estate,” according to a petition filed in Los Angeles County probate court. (1)
The petition was filed by Kaya’s father, Panettiere’s ex-fiancé Wladimir Klitschko, who is asking to be named temporary guardian of their daughter’s estate. (1)
It warns that “there is a high probability that property belonging to Hayden’s Estate may be lost, damaged or dissipated before a duly appointed personal representative can be in place to protect it.” (2)
The filing also cites missing valuables, the Associated Press reported, and a hearing was scheduled for Oct. 8, according to Global News. (2)
I’ve been a CPA since 1981, and I served as executor of my parents’ estate. I don’t know what estate documents Panettiere had. But this case shows something every parent and grandparent should understand: a child can inherit money, but a child can’t manage it.
In California, a court-ordered guardianship of the estate is needed “if a child has a lot of money, income, or property,” such as an inheritance from a parent who died. (3)
And plenty of families aren’t prepared. A 2021 Gallup poll found that 46% of U.S. adults have a will, though just over three-quarters of those 65 and older do. (4)
Here are five ways to make sure money you leave a child or grandchild actually gets to them.
1. Understand what happens when a minor inherits
It’s easy to assume that if you leave money to a grandchild, the grandchild simply gets it. Not if they’re a minor.
When a child inherits a significant amount, a court may need to appoint someone to handle it. California’s court system describes it simply: “The court orders someone to manage the child’s finances.” (3)
The Panettiere filing shows why that gap matters. Until someone has legal authority, property can sit unprotected. (2)
2. Name who manages the money, not just who raises the child
It’s natural to focus on who would raise your kids. Just as important is who would control the money.
Ask an estate attorney how to name both in writing while you can choose, instead of leaving it to a judge.
When you’re gone, your problems vanish — but your family’s nightmare is just beginning. Without a plan, courts decide everything, probate drags on for months, and loved ones are left guessing.
A will locks in exactly who gets what — yours in minutes for $199. A trust goes further, controlling how and when heirs inherit, starting at just $499. Get started right now
3. Know how custodial accounts work for gifts to kids
One common way to give money to a minor is a custodial account under the Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA).
Here’s the trade-off, according to the securities industry regulator FINRA. Generally, the minor “becomes the owner of the property at the time of the gift.” A custodian manages it “until the beneficiary reaches the age of majority,” and then must hand it over. (5)
But at that age, the money is theirs to spend as they please. If that worries you, ask an estate attorney whether a trust makes more sense.
Quick gut-check — if your money advice is coming from random online influencers, you’re playing a dangerous game. I’ve been a CPA since 1981 and writing about money since before the internet existed. Sign up for the free Money Talks Newsletter and get expert advice that’s been tested by time.
4. Make sure there’s money to protect
Planning who controls a child’s inheritance only matters if there’s an inheritance. For many parents of young kids, the answer is life insurance.
If anyone depends on your income — a spouse, kids, even a mortgage cosigner — term life insurance is the cheapest way to protect them. Premiums rise with every birthday, so locking in a rate sooner can help.
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When you name beneficiaries on a policy, don’t guess. Ask the insurer or an attorney how to set it up if your heirs are minors.
5. Keep a list of what you own and who can get to it
The Panettiere petition talks about missing valuables and people accessing her home without authorization. (2) That’s an extreme case, but the lesson is ordinary.
For any executor, one of the first jobs is simply finding everything. Make that job easy for whoever comes after you. Keep an up-to-date list of accounts, valuables and documents, and tell your executor where it is.
A financial professional can help you pull it together, including how your accounts are titled and who inherits each one.
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My honest take
This is a sad story first, and an 11-year-old girl is at the center of it. I’m not judging anyone involved.
But it’s a reminder that loving someone and protecting them financially take two different kinds of effort. If there’s a child or grandchild in your will, spend an afternoon making sure the money reaches them the way you intend.
Sources: 1. ABC News; 2. Global News; 3. California Courts; 4. Gallup; 5. FINRA
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