Detailed Answer
Disclaimer: This article is for informational purposes only. It does not constitute legal advice. Consult a qualified attorney for guidance.
When someone dies intestate (without a will) in Florida, intestate succession rules under Florida Statutes Chapter 735 define who inherits. If one of the heirs is a minor, Florida law provides several safeguards to ensure the child’s property remains protected until they reach adulthood.
1. Appointment of Personal Representative: The probate court appoints a personal representative to manage the decedent’s estate, including any share that passes to a minor. The representative must follow the procedures in Florida Statutes Chapter 733 (Fla. Stat. §733).
2. Guardianship of the Minor’s Property: If the minor’s inheritance exceeds $15,000 or if the court deems it necessary, a guardianship of the property may be required under Florida Statutes Chapter 744 (Fla. Stat. §744.301). In that case:
- A guardian of the property is appointed by the court upon petition.
- The guardian must file an inventory and periodic accountings.
- The court must approve major transactions involving the minor’s inheritance.
3. Uniform Transfers to Minors Act (UTMA) Account: The personal representative or guardian can transfer the minor’s share into a UTMA custodial account. Florida’s UTMA is codified at Chapter 710 (Fla. Stat. §710.101). Benefits include:
- Tax advantages for small inheritances.
- Flexible use of funds for the minor’s benefit.
- Automatic distribution to the beneficiary at age 21 (or a later age if specified).
4. Creation of a Protective Trust: The personal representative may establish a trust for the minor’s benefit under Florida Statutes Section 738.103 (Fla. Stat. §738.103). The trust can specify how and when the minor receives distributions, often at ages 18, 21, or older.
5. Court Supervision and Reporting: Guardians of the property and trustees must provide the probate court with regular accountings. The court monitors investments, distributions, and compliance with fiduciary duties to protect the minor’s interests.
Helpful Hints
- File for guardianship promptly if the minor’s share exceeds $15,000 to avoid court sanctions.
- Consider a UTMA account for modest inheritances (under $15,000) to simplify administration.
- Choose a reliable fiduciary—either a bank trust department or a trusted individual.
- Keep detailed records of all receipts, disbursements, and investments for annual accountings.
- Consult a probate attorney early to determine whether a trust or guardianship best fits the child’s needs.
- Review statutory ages for distribution: UTMA defaults to age 21, while a trust can extend past that age.