How Wisconsin Laws Protect a Minor’s Inheritance When There Is No Will

Disclaimer: This article is for informational purposes only and does not constitute legal advice.

Understanding Intestate Succession

When someone dies without a valid will, Wisconsin’s intestacy laws determine who inherits. Under Wis. Stat. § 852.07, assets pass to a surviving spouse and any children. If a child is under age 18, the court must safeguard that inheritance until the child reaches legal age.

Appointment of a Guardian of the Estate

Anyone with interest—often the surviving parent—can petition the probate court to appoint a guardian of the minor’s estate. Wisconsin law in Ch. 880 governs guardianships. Key steps include:

• Filing a petition under Wis. Stat. § 881.01.
• Serving notice on interested parties.
• Securing a bond or obtaining a bond waiver per Wis. Stat. § 881.15.
• Submitting an inventory and periodic accountings under Wis. Stat. § 886.01.

Uniform Transfers to Minors Act (UTMA) Custodianship

Wisconsin adopted the Uniform Transfers to Minors Act (UTMA) in Wis. Stat. §§ 177.1–177.8. Under UTMA:

• A custodian can manage the minor’s property without formal court guardianship for gifts or inheritances.
• No bond is typically required for smaller gifts.
• The custodian must keep records and act in the minor’s best interest.
• Assets automatically transfer to the minor at age 21 under Wis. Stat. § 177.7.

Establishing a Trust for the Minor

Parties can create a trust to hold the minor’s inheritance. A trustee manages assets according to trust terms, which can specify distribution ages beyond UTMA limits. Trusts offer flexibility for long-term planning.

Small Estate Procedures

If the decedent’s total estate (excluding certain assets) does not exceed $50,000, Wisconsin’s summary settlement process may apply under Wis. Stat. § 859.01. This streamlined process can distribute assets under court supervision without a full probate or guardianship.

Key Considerations for Protecting a Minor’s Inheritance

Managing a minor’s inheritance requires prompt action and compliance with court rules. Guardianship or UTMA custodianships involve ongoing duties, including regular accounting and adherence to fiduciary standards. Planning early reduces delays and protects the minor’s interests.

Helpful Hints

• Begin the guardianship or UTMA process promptly to ensure funds are available for the minor’s needs.
• Gather documentation of the decedent’s assets and debts before filing any petitions.
• Evaluate whether UTMA or a formal guardianship best fits the size and complexity of the inheritance.
• Maintain detailed records and file required court accountings on schedule.
• Consult a probate attorney to navigate complex procedures and ensure compliance with Wisconsin statutes.