Minnesota law has specific laws about how a personal representative (executor) is to handle distributions to a minor from an estate.
Specifically, if the personal representative is required to transfer money to a minor pursuant to the terms of a deceased’s Will or intestate succession, the distribution can be made by transferring not more than $5,000 per year to:
(1) A person who has the care and custody of the minor and with whom the minor lives;
(2) a guardian of the minor
(3) a custodian under the Minnesota Uniform Transfers to Minors Act;
(4) a financial institution as a deposit in an interest-bearing account in the sole name of the minor and giving notice of this deposit to the minor.
However, the personal representative should keep in mind that the option listed above are not available if a Conservator has been appointed for the minor. In this case, the Conservator must receive the funds.
Personal Property Distribution to a Minor
When a minor child receives or is entitled to personal property, the court may order the personal representative to deposit such property in a savings account or deposit at a bank. The court can also order that the personal representative can give up to $2,000 to the minor’s parents as custodians for the funds.
Uniform Transfers to Minors Act
Minnesota has a specific law on transfers to minors – the Uniform Transfers to Minors Act. If a Will or Trust or intestate succession authorizes a transfer to a minor, the personal representative may transfer the money/assets to a custodian pursuant to Minnesota Statutes 527.29. This transfer must be for the benefit of the minor. The transfer will be made if the personal representative believes it will be in the “best interest” of the minor and if it is not specifically prohibited by the language of the Will or Trust.
Finally, if the transfer is $10,000 or less, it does not have to be approved by the probate court.
Appointment of a Guardian or Conservator
Attorneys will often advise families to petition the court for a person or persons to be appointed conservator and/or guardian of a minor in cases where the minor will receive a large amount of funds.
The venue for a conservatorship is where the minor resides. However, if the minor does not reside in Minnesota, the court can have venue in the county where the property of the deceased resides. This is often the same county as the probate court and the probate lawyers can work with the family to handle both the estate and the guardianship in the same court.
Free Initial Consultations
Questions about first time personal representative duties? Contact the Flanders Law Firm today. The firm offers free consultations to all potential clients and Dakota County probates. Call (612) 424-0398.
