Detailed Answer
When a Vermont resident dies without a will (intestate), their assets pass under Vermont’s intestacy laws (14 V.S.A. § 304). If a beneficiary is a minor, the court must appoint someone to hold or manage that child’s share until they reach the age of majority or the age specified by law.
1. Intestate Distribution
Under 14 V.S.A. § 304, if a decedent leaves children but no spouse, the children share equally. If there is a surviving spouse and children, the spouse receives the first $100,000 plus half of the remainder; the rest distributes equally among the decedent’s children.
2. Appointment of a Conservator (Guardian of the Estate)
Vermont law prohibits minors from holding legal title to property. The probate division of the superior court appoints a conservator (guardian of the estate) to manage the minor’s inheritance. A parent or other adult files a petition under 14 V.S.A. § 2403 and serves notice per § 2410. Once appointed, the conservator must post a bond, file an inventory, and submit annual accountings under 14 V.S.A. § 2461. The conservatorship ends when the child reaches 18, unless the court orders another age.
3. Uniform Transfers to Minors Act (UTMA)
Vermont adopted the UTMA (14 V.S.A. §§ 3031–3044). Under UTMA, an estate can transfer assets directly to a custodian for the minor. The custodian holds and manages those assets until the minor turns 21 (or up to age 25 by designation), without formal conservatorship proceedings.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult an attorney for advice specific to your situation.
Helpful Hints
- File the conservatorship petition promptly to protect assets and minimize fees.
- Compare conservatorship costs versus a UTMA custodianship; UTMA is often cheaper and quicker.
- Appoint a reliable fiduciary; they must act solely in the child’s best interest.
- Review key statutes: 14 V.S.A. § 304, § 2403, § 3031.
- Maintain detailed financial records and file required reports on time.