Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney licensed in Delaware to discuss your specific situation.
Detailed Answer
When someone dies without a will in Delaware (12 Del. C. Chapter 2, Subchapter II), the state’s intestate succession rules determine who inherits. If the decedent leaves a minor child and no surviving spouse, the child receives the entire estate. If both minor and spouse survive, the distribution follows a statutory formula.
However, a minor cannot manage or directly receive substantial assets. Delaware law provides mechanisms to safeguard a minor’s inheritance until they reach adulthood (18 years old). Key steps include:
- Identify Next of Kin and Value the Estate. Probate court will appoint a Personal Representative to collect assets, pay debts, and determine eligible heirs under 12 Del. C. § 2101.
- Petition for Appointment of a Guardian of the Estate. A family member or interested party files a petition in the Delaware Court of Chancery or Superior Court (Probate Division). The court evaluates the proposed guardian’s fitness to manage the minor’s share. Upon approval, the guardian safeguards and invests the funds.
- Establish a Uniform Transfers to Minors Act (UTMA) Account. Delaware’s UTMA (12 Del. C. Chapter 39) allows a custodian to hold and manage assets on behalf of the minor. The custodian has fiduciary duties and must account for earnings. At age 18, the minor can demand distribution of the remaining assets.
- Consider a Testamentary or Inter Vivos Trust for Minors. While the decedent did not leave a will, heirs or guardians may petition to create a trust under 12 Del. C. Chapter 9. Trusts offer flexibility to extend distributions beyond age 18 and protect funds from creditors.
- File Annual Accountings and Reports. The guardian or custodian must file periodic accountings with the court, showing receipts, disbursements, and investments. This oversight ensures that the minor’s inheritance is protected and used solely for the minor’s benefit.
Helpful Hints
- Gather death certificates, beneficiary information, and asset records before petitioning the court.
- Act promptly—Delaware law penalizes delays in filing guardianship petitions.
- Choose a guardian or custodian with financial experience and a clean legal record.
- Keep thorough records of all expenses and income related to the minor’s inheritance.
- Understand that UTMA custodians cannot use funds for their own benefit; all distributions must serve the minor’s needs.
- Consult a probate attorney to guide you through statutory deadlines and court procedures.