Detailed Answer
When a person dies without a will in Alabama, state law governs how the estate passes to heirs. If an heir is underage, Alabama requires special procedures to safeguard that minor’s share. Below are the key steps under Alabama law.
1. Intestate Succession Rules
Under Ala. Code § 43-8-61, a decedent’s estate passes to surviving children equally. A minor child inherits just like an adult heir, but the court must protect any inheritance until the minor reaches majority.
2. Opening Probate and Appointing a Personal Representative
The probate court opens an estate administration under Title 43, Chapter 2. The court appoints a personal representative (PR). The PR identifies assets, notifies creditors, and distributes assets in line with intestacy law. The PR holds any minor’s share separately until the court directs otherwise.
3. Appointing a Guardian (Conservator) of the Estate
If a minor’s inheritance exceeds a statutory threshold, the court will appoint a guardian of the estate (also called a conservator) under Ala. Code § 43-2-381. The guardian manages the funds for the minor’s benefit. The court requires the guardian to:
- Post a bond (§ 43-2-354).
- File annual accountings.
- Invest according to court-approved standards.
4. Small Inheritance Exception
If a minor heir’s share does not exceed $8,000, the personal representative may deposit that amount into the court’s registry in accordance with Ala. Code § 43-2-720 instead of opening a guardianship. The funds earn interest and await distribution when the minor reaches legal age.
5. Custodial Accounts Under UTMA
As an alternative, the estate can transfer the minor’s share into a custodial account under Alabama’s Uniform Transfers to Minors Act (Ala. Code § 19-3B-1 et seq.). A custodian manages those assets until the minor turns 21 (or up to age 25 if specified).
6. Final Distribution at Majority
Alabama sets the age of majority at 19 years old (Ala. Code § 26-1-1). When the minor turns 19 (or the UTMA age), the guardian or custodian petitions the court for final distribution of any remaining funds.
Disclaimer: This article provides general information about Alabama law and does not constitute legal advice. You should consult a qualified attorney for advice regarding your specific situation.
Helpful Hints
- Begin probate promptly to protect all heirs, including minors.
- Gather certified copies of the decedent’s death certificate early.
- Verify the current small inheritance threshold with the probate clerk.
- Maintain clear records of all accountings and court filings.
- Consider UTMA custodial accounts for flexible management options.
- Plan ahead: establish a will or trust to avoid intestacy and simplify probate for minor heirs.