Disclaimer: This article is for informational purposes only and does not constitute legal advice. For guidance specific to your situation, consult a qualified attorney.
Detailed Answer
1. Intestate Succession under Texas Law
When someone dies without a will in Texas, their assets pass to heirs under the Texas Estates Code §201.001. If the decedent is survived by a spouse and children (including minors), the estate divides accordingly:
- Community property generally goes one-half to the surviving spouse and one-half to the children.
- Separate property often goes either entirely to the children or shared between spouse and children, depending on circumstances.
2. Appointment of a Guardian of the Estate for the Minor
If a minor inherits under intestacy, Texas law requires the court to appoint a guardian of the estate to manage that inheritance until the child reaches 18. The court follows procedures in Texas Estates Code Chapter 1151. Steps include:
- Filing an application for guardianship in the probate court of the county where the decedent lived.
- Providing notice to interested parties and holding a hearing.
- The judge appoints a qualified adult (often a parent or close relative) as guardian of the estate.
3. Managing Funds with Court-Approved Accounts
Guardians must safeguard the minor’s inheritance. For smaller estates (often under $50,000), the guardian may deposit funds into a blocked account with the county or district clerk under Texas Estates Code §1357.051. The account cannot be accessed without court approval, protecting the minor’s assets.
4. Small Estate Affidavit Option
If the estate’s personal property value (minus liens) does not exceed $75,000 and there is no real property, an heir can use a small estate affidavit under Texas Estates Code §205.002. This streamlines distribution without full probate:
- An heir files an affidavit swearing to the estate’s value and relationship.
- Creditors have limited rights to contest within 30 days.
- After expiration, heirs can collect property directly. The minor’s share would then be handled via guardianship or a custodial account.
5. Establishing a Custodial Account under UTMA
Once the minor’s share is distributed, placing funds in a Texas Uniform Transfers to Minors Act (UTMA) account can offer structured protection. Under Texas Property Code Chapter 141:
- A custodian (often the guardian) manages the assets for the child’s benefit until a specified age (commonly 21).
- UTMA accounts allow a range of assets—cash, stocks, real estate.
- At the designated age, the minor gains full control.
Helpful Hints
- File for guardianship promptly to avoid delays in accessing funds for the minor’s needs.
- Keep detailed records of all income and expenses managed by the guardian.
- Consider professional trustees if the inheritance is substantial or complex.
- Explore other planning tools (e.g., trusts) once the minor reaches adulthood.
- Consult a probate attorney to navigate court procedures and compliance.
By understanding Texas intestate succession rules, guardianship procedures, and protective banking options, you can ensure a minor’s inheritance is managed responsibly until they reach maturity.