The Minnesota Uniform Transfers to Minors Act (UTMA) is a set of laws that governs how assets are transferred to a minor, either by Will or in the absence of a Will (intestacy). Minors cannot directly receive assets from an estate; the assets must be held either in trust or in the custody of a designated person, called an UTMA custodian.
The reasoning for these laws is simple: young persons receiving an asset like a house or a sum of money without some adult oversight is usually not a good idea. I think about what may have become of my teen-aged self getting my grubby paws on a big inheritance. I shudder at the thought.
Under the UTMA, a testator can designate a custodian in their Will to manage assets on behalf of a minor child. The child does not assume control of those assets until reaching the age of 21 years. However, if a conservator or personal representative of the estate makes the transfer without specific authorization in the Will, the minor child will get control of the assets at age 18.
If the testator chooses to
nominate a conservator in the Will, the probate court makes the final
determination as to who shall be appointed as conservator. Minnesota law
provides for a priority of who may be appointed as conservator. The
conservatorship ends when the minor child attains the age of 18 and the child
will gain control of the assets.
Appointing an UTMA custodian in your Will will eliminate the need for an appointed conservator, and allow the assets to be held until the child reaches 21. If the testator desires to have the assets held until the child is older--especially in the cases of large inheritances--a trust is an option, as that instrument allows the assets to be transferred at a designated age.
If you die without a Will and
leave behind minor children, a probate judge will determine who manages your
assets, and your children might receive them outright at an age in which they
are unable to effectively manage them.
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A good estate planning attorney can help you get started with a plan, tailored to your wishes and needs, that will help protect your property for your loved ones.