Detailed Answer

When someone dies without a will in Virginia, the state’s intestacy laws (Va. Code § 64.2-200 et seq.) decide who inherits. If the decedent leaves a minor child, the minor’s share passes under these rules. To protect a minor’s inheritance, Virginia law relies on two main mechanisms: appointing a guardian of the estate and using a custodial account under the Uniform Transfers to Minors Act (UTMA).

1. Appointing a Guardian of the Estate

Under Va. Code § 64.2-800, the circuit court must appoint a guardian of the estate for any minor who inherits through intestacy if the value of the inheritance exceeds $20,000. The court follows these steps:

• Nomination: A family member or interested party may petition the court to serve as guardian of the estate.
• Bond Requirement: The court usually requires a bond to safeguard the minor’s funds.
• Fiduciary Duty: The guardian collects assets, pays debts and taxes, invests prudently, and manages distributions for the minor’s benefit.
• Reporting: The guardian files annual accountings with the court detailing income, expenses, and investments.

Once the minor turns 18, the guardian must distribute all remaining assets directly to the former minor.

2. Using a UTMA Custodial Account

Virginia’s Uniform Transfers to Minors Act (Va. Code § 64.2-2600 et seq.) lets any person transfer assets into an account held by a custodian for the minor. Key features include:

• No Court Supervision: A custodian can manage small transfers without formal guardianship or bonding.
• Flexible Use of Funds: The custodian may use funds for the minor’s health, education, support, or general welfare.
• Termination Age: The account terminates when the minor reaches age 21, at which point the remaining assets pass outright to the former minor.

In practice, the guardian may petition the court to place the inheritance into a UTMA account if that structure better fits the minor’s needs.

3. Trust Alternatives

A decedent could have created a testamentary trust, but in intestacy there’s none. Still, the guardian or interested party may ask the court to establish a court-supervised trust under Va. Code § 64.2-809. The court may tailor distribution terms, such as staggering payments at ages 18, 21, and 25.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney to address specific legal concerns.

Helpful Hints

• File a petition promptly: A delay can leave assets unprotected.
• Gather asset information: Provide the court with bank statements, property deeds, and investment records.
• Choose a reliable guardian or custodian: Select someone with financial experience and integrity.
• Consider UTMA for smaller estates: It offers less paperwork and oversight than formal guardianship.
• Plan for long-term needs: If the inheritance is substantial, consider advising the guardian on investment strategy.