Disclaimer: This article provides general information under California law and does not constitute legal advice. Consult an attorney for advice specific to your situation.
Detailed Answer
When someone dies intestate (without a will) in California and leaves assets for a minor, state law offers several protections to ensure the child’s inheritance remains secure until they reach adulthood. Below are the main steps:
1. Determine Heirship under Intestate Succession
Under California Probate Code section 6400 (Cal. Prob. Code § 6400), a minor child of the decedent is entitled to a share of the estate. The court identifies all heirs and allocates assets according to those rules.
2. Petition for Appointment of a Guardian of the Estate
An interested person (often a surviving parent or relative) must petition the probate court to appoint a guardian of the estate (Cal. Prob. Code §§ 1500, 1510; Prob. Code § 1510). The guardian collects assets, manages investments, and safeguards funds. The court typically requires the guardian to post a bond under Prob. Code § 2320.
3. Use a Blocked Account for Small Sums
If the inheritance is modest, the court may allow deposit of funds into a blocked account under Prob. Code § 3600. The minor cannot withdraw these funds without a court order, protecting the money until the guardian arranges proper management.
4. Consider a Uniform Transfers to Minors Act (UTMA) Account
The estate representative can transfer assets to a custodian under the Uniform Transfers to Minors Act (Cal. Code Civ. Proc. § 3800–3811; CCP § 3800). The custodian holds assets outside probate until the minor turns 21.
5. Court Supervision and Accounting
After appointment, the guardian must file an inventory and appraisal within 100 days (Prob. Code § 1063) and annual accountings (Prob. Code § 2620). The court reviews these filings to ensure the guardian manages the inheritance properly until the minor reaches 18.
Helpful Hints
- Consult a probate attorney early to guide you through the guardianship process.
- Use UTMA accounts for assets like stocks or savings bonds to avoid probate.
- Keep detailed financial records for court accountings.
- Understand that blocked accounts require court approval for any withdrawal.
- Explore special needs trusts if the minor has disabilities for additional protection.