Detailed Answer
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
1. Open Probate Under Indiana Intestate Succession Laws
When someone dies without a will in Indiana, their estate proceeds through intestate succession. The court appoints an administrator to manage the estate under Indiana Code §29-2 (Intestate Succession). You begin by filing a petition in the probate court of the county where the decedent lived. See https://iga.in.gov/legislative/laws/2023/ic/titles/29/articles/2.
2. Identify the Minor’s Share
During probate, the administrator compiles a list of heirs and assigns each heir’s share. If the only heirs are minor children, the entire estate will pass to them. If there is a surviving spouse, the court divides assets per Indiana Code §29-2-7. Go to https://iga.in.gov/legislative/laws/2023/ic/titles/29/articles/2#29-2-7-1 to learn more.
3. Petition for Appointment of a Guardian of the Minor’s Estate
Minors cannot manage inherited assets. To protect their share, an interested party (often a parent or relative) petitions for a guardian of the minor’s estate under Indiana Code §29-1.5. The court evaluates the petitioner’s fitness and issues letters of guardianship. See https://iga.in.gov/legislative/laws/2023/ic/titles/29/articles/1.5.
4. Post Bond and Maintain Separate Accounts
Guardians must post a bond to secure performance (IC §29-1.5-4, IC §29-1.5-5). They hold the minor’s funds in a separate blocked or custodial account. This ensures personal funds remain inaccessible until the minor reaches the age of majority.
5. File Periodic Accountings
Guardians must report annually and at the end of their service. These accountings detail all receipts, investments and disbursements. The court reviews them to prevent mismanagement under Indiana Code §29-1.5-17. Link: https://iga.in.gov/legislative/laws/2023/ic/titles/29/articles/1.5#29-1.5-17.
6. Consider a Custodial Account Under the Uniform Transfers to Minors Act
If a third party can transfer the inheritance directly into a custodial account, they may use Indiana’s Uniform Transfers to Minors Act (UTMA) under IC §29-3-5. Such custodial accounts let a designated custodian manage assets until the minor turns 21. Learn more at https://iga.in.gov/legislative/laws/2023/ic/titles/29/articles/3.
Helpful Hints
- Begin probate promptly: Indiana requires filing within months after death.
- Select a trustworthy guardian: the court assesses character and financial fitness.
- Keep detailed records: document every transaction for court review.
- Review bond requirements: insufficient bonds can expose minors to risk.
- Consult an attorney: probate rules and deadlines can be complex.