Detailed Answer
When a person dies without a valid will, they die “intestate.” Under KRS 391.020, Kentucky law directs how assets pass to heirs. If one of those heirs is a minor, specific safeguards protect the minor’s inheritance until they reach age 18.
1. Opening an Estate Administration
An interested party (often a surviving parent) files a petition in the county probate court to open an estate administration. The court issues letters of administration to appoint a personal representative. This person gathers assets, pays debts, and applies intestacy rules to distribute property.
2. Appointment of a Guardian of the Estate
The court must appoint a guardian of the estate to manage any share belonging to a minor (KRS 387.310). The guardian safeguards assets, invests responsibly, and accounts to the court. Often, the child’s surviving parent becomes guardian, unless the court finds cause to appoint another qualified adult.
3. Use of the Uniform Transfers to Minors Act (UTMA)
Kentucky’s UTMA (KRS 387.510–387.595) allows funds to transfer directly into a custodial account. A custodian manages and uses the assets for the minor’s benefit. At age 18, the minor receives full control.
4. Court Oversight and Bond Requirement
Court supervision continues until the minor reaches majority. The guardian or custodian must post a bond to protect the estate from mismanagement. Periodic filings of accountings ensure transparency. Creditors and interested parties receive notice.
5. Creating a Minor’s Trust (Optional)
Parties may petition the court to establish a trust for minors. A professional trustee holds assets, invests per court-approved terms, and distributes funds according to guidelines (e.g., educational expenses). This offers extra protection beyond informal guardianship.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice tailored to your situation.
Helpful Hints
- File the intestate petition as soon as possible to start the administration process.
- Confirm the guardian of the estate posts the required bond under KRS 387.310.
- Consider UTMA for a streamlined custodial account with minimal court involvement.
- Keep thorough records of all transactions and file accountings on time.
- Discuss minor’s trust options with an attorney if you need tailored distribution terms.