Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When a person in Oregon dies without a will (intestate), the Minor’s share of the estate is governed by Oregon’s intestate succession laws. Under ORS 112.155, children of the decedent inherit equally. A minor cannot directly manage inherited assets. The court and state law provide mechanisms to protect that inheritance until the child reaches adulthood.
1. Probate and Appointment of a Personal Representative
If the estate is large enough to require probate, anyone with priority (usually a close family member) may petition the probate court to be appointed as personal representative. See ORS 112.045. The personal representative inventories assets, pays debts, and oversees distribution. This ensures the minor’s share is segregated and properly handled.
2. Distribution to a Custodian under UTMA
Oregon’s Uniform Transfers to Minors Act (UTMA) allows the personal representative to transfer a minor’s inheritance to a custodian for the child’s benefit. Under ORS 130.260–130.295, a custodian holds and manages assets until the minor turns 21. This process typically avoids a formal guardianship proceeding and provides a straightforward custodial account.
3. Court-Appointed Guardianship of the Estate
If UTMA is unsuitable (for example, if real property is involved), the court can appoint a guardian of the estate under ORS 126.005 et seq. A guardian of the estate provides ongoing court supervision, regular accounting, and court approval for major financial decisions, ensuring no misuse of funds.
4. Establishing a Trust
In some cases, creating a trust during probate offers tailored protection. The personal representative or guardian can establish a testamentary trust for the minor. A trustee manages the trust assets under terms the court approves, distributing income or principal at milestones or as needed for the child’s welfare.
5. Timing and Court Oversight
File probate petitions and guardianship applications promptly. Oregon law imposes deadlines for creditors’ claims and court filings. Regular court reports or accountings by the personal representative, custodian, or guardian keep the inheritance safeguarded and transparent.
Helpful Hints
- Locate all financial records and asset titles early to assist the personal representative.
- Consider UTMA for simple custodial accounts under ORS 130.260–130.295: no annual filings are required.
- For real estate, a guardianship of the estate under ORS 126.005 offers more control and court oversight.
- Explore a testamentary trust if you need customized distribution terms or oversight beyond age 21.
- Consult a probate attorney to ensure all petitions and accountings comply with Oregon court rules.
- Keep detailed records of all expenditures and distributions for court review.