Detailed Answer
When a decedent dies without a will in North Dakota, state law governs the distribution of assets. Under NDCC 30.1-03, a minor heir receives a share according to intestate succession rules. However, because minors cannot manage property, the court takes steps to protect their inheritance.
First, a personal representative (previously called an executor) administers the estate. The court appoints this representative under NDCC 30.1-17. The personal representative holds assets until distribution but cannot release the minor’s share until proper safeguards are in place.
Next, the court appoints a guardian of the estate (also known as a conservator) under NDCC 30.1-27. This guardian manages the minor’s share, ensuring it covers the minor’s care and best interests. The guardian must file annual reports and obtain court approval for major transactions.
For smaller inheritances, parties may use a custodial account under the Uniform Transfers to Minors Act. Under NDCC 30.1-38, any person can transfer funds into a custodial account held by a custodian until the minor reaches age 18 or the statutory age. UTMA accounts simplify management and avoid complex guardianship proceedings.
Lastly, the court may approve a trust for the minor under North Dakota trust law (NDCC 30.1-50). The trust can set distribution terms—such as ages or milestones—and name a trustee to handle investments and distributions according to the decedent’s or court’s instructions.
These mechanisms work together to protect the minor’s inheritance until they reach legal age or as directed by the court or decedent’s intent.
Helpful Hints
- File for appointment of a personal representative promptly to avoid delays in estate administration.
- Consider a UTMA custodial account for modest inheritances (often under $15,000) to reduce court involvement.
- Keep thorough records; estate and guardianship overseers must report major transactions to the court annually.
- Explore trust options with an attorney to tailor distribution ages and conditions.
- Review NDCC sections on intestate succession, guardianship, UTMA, and trusts to understand requirements and deadlines.