Detailed Answer
In Michigan, when a person dies without a will (intestate), the Estates and Protected Individuals Code (EPIC) sets rules for distributing assets. Under MCL 700.2103, if the decedent is a parent, the minor child inherits the entire estate. Since a minor cannot directly manage assets, Michigan law requires the probate court where the decedent lived to appoint a guardian of the minor’s estate. The court may appoint the surviving parent or another qualified individual as guardian of the estate (MCL 700.1302).
The guardian must file an application, take an oath, and post a bond. Once appointed, the guardian has a fiduciary duty to manage the inheritance in the minor’s best interest. EPIC requires the guardian to file annual accountings with the probate court (MCL 700.5431).
As an alternative, the guardian can use Michigan’s Uniform Transfers to Minors Act (UTMA). Under MCL 554.12101 et seq., a custodian may hold and invest the minor’s assets until age 21. A UTMA account simplifies record-keeping and avoids daily court supervision.
When the minor turns 18 (or 21 under UTMA), the guardian must distribute the remaining assets to them. Proper court approval and accountings ensure transparency and protect the minor’s inheritance.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Michigan attorney to discuss your specific situation.
Helpful Hints
- File the guardianship application promptly to secure court supervision.
- Keep detailed records of all receipts, distributions and expenses.
- Consider a UTMA account for streamlined management until age 21.
- Consult a probate attorney to navigate complex estate issues.
- Ensure annual accountings to maintain compliance with EPIC.