Yes.  Even if property is left to a minor outside of a trust, a guardianship management trust (sometimes called an 867 trust because they are set up under Section 867 of the Probate Code) can be established.  Court approval is required, and these trusts are less flexible and more expensive to establish than a trust in a will.  In most cases the trustee must be a bank or trust company.  Also, the age of trust termination is set by the court and has to be 18, 25 or some age in between.  Guardianship-style accountings are required each year, and there are restrictions on the compensation a trustee can receive.  For these reasons, banks and trust companies are sometimes reluctant to take small trusts.  If no bank or trust company will take an 867 trust, the court may appoint an individual, but the individual must post a bond, which may be difficult to obtain.

Last updated on January 6, 2011 by Glenn Karisch