Minnesota Probate | Making Distributions to Minor Heirs

Our office has often been asked this questions:  how do I give money, from an estate, to a minor?

The answer is that it is complicated.  Like most legal problems.  Let’s look at the solution.

Minor Heirs

Minnesota law tells us that a “minor” is a person under the age of 18 years.  When a minor is to receive or is entitled to a distribution of property from an estate, a court of law may order that the personal representative (executor) of the estate deposit all of the money, or a part of the money, into some kind of account for the benefit of the minor.  When that minor reaches the age of 18 years, typically, the minor will then receive that money.

The court can require deposit into a savings account, savings certificate or other certificate of deposit in a bank, or to invest it in U.S. savings bonds.  Minnesota Statute 524.3-915(b) is the law on this issue.

Currently, the court can also order that up to $2,000.00 in estate property be paid to the minor’s parents, custodian, or other guardian with whom the minor is living, to be used for the benefit of the minor.

Uniform Transfer to Minors Act

If a Will or Trust says that it is allowed, the personal representative, may transfer money to a custodian of a minor.  That custodian is to use the money the minor would otherwise receive, by placing it into a savings or other qualified account on behalf of the minor.  The Act is codified under Minnesota Statute 527.25.

If there is no Will, the custodian can still transfer property belonging to the minor as long as the dictates of Minnesota law are followed.

If a personal representative believes, in good faith, that the transfer is necessary, and it is not prohibited by a Will, Trust, or other testamentary document, the personal representative is allowed to do it.  Minnesota Statute 524.26(c).

Finally, if the transfer is less than $10,000.00, the personal representative does not need to seek approval from the court.

Appointment of a Guardian or Conservator

When we have dealt with transfers to minors in Minnesota probates, we often work with a court-appointed Guardian and/or Conservator.  We have discussed Minnesota Conservator issues in other articles.

In brief, a court can appoint someone the Guardian/Conservator of a minor shortly after a parents death under Minnesota Statute 524.5-201.  This process is often not known by many practicing attorney; however, it is certainly one that should be looked-into.  The benefit of this statutory process, is a court can appoint a Guardian, ex parte, immediately and without court hearing.  The benefits to such an Order are many.  Often, when a parent dies, things can be a financial mess.  Furthermore, the child might need an immediate care-giver.  Therefore, Minnesota law has developed an “expiated” process to resolve the mess.  If you have questions about this process, you should speak with a qualified guardian and/or conservatorship lawyer.

Minnesota Probate Lawyers

Joseph M. Flanders and Flanders Law Firm LLC have years of experience dealing with estate issues and transfer to minors.  The process can be very confusing and people are often grieving for a loved-one who has just died.  Mr. Flanders is a compassionate advocate for people in need and he wants to help them.  For a free initial consultation, please call the firm at 612-424-0398.