Child Estate Administration and Guardianship for Surviving Children

Does a Minor Child Even Have an Estate?

Most parents assume their child owned nothing. But minors can hold assets that require legal administration after death — and if those assets exist, ignoring them creates problems that surface months or years later.

Common assets a minor might hold: a Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) custodial account opened by a grandparent or relative. A savings account with a small balance. A trust established by a family member. An inheritance received before the child died. Proceeds from a life insurance rider on a parent's policy that named the child as beneficiary. Digital assets — gaming accounts with stored value, prepaid app balances, cryptocurrency held in a custodial wallet.

If the total value is small, most states offer a simplified process: a small estate affidavit that lets you transfer eligible funds without formal probate. Thresholds vary by state — some cap at $25,000, others at $100,000 or more — and each state's law sets the required documents and filing process.

If the account balance is significant, formal probate may be required. An estate attorney can determine which path applies in your jurisdiction.

Intestate Succession for a Minor

If a child dies without a will — which is almost always the case for a minor — the estate is distributed according to your state's intestate succession laws. State law determines which relatives inherit and what shares they receive; there is no single order that applies nationwide.

There is one critical exception worth knowing. Under Georgia law, a parent who willfully abandoned their minor child loses all rights to inherit from the child's estate and cannot serve as its administrator (O.C.G.A. § 53-2-1(d)). This is a Georgia-specific rule; do not assume it applies in another state.

In a divorced family, absence alone should not be treated as proof of statutory abandonment. A Georgia probate attorney can advise whether O.C.G.A. § 53-2-1(d) applies to the facts.

UGMA and UTMA Accounts

Custodial accounts under UGMA or UTMA are legally owned by the minor, with a designated custodian managing the account until the child reaches adulthood. When the child dies, the funds become part of the child's estate.

If the account had a named beneficiary (some custodial accounts allow this), the funds transfer directly to that beneficiary without going through probate. If there is no beneficiary designation — which is the more common scenario — the funds are payable to the child's probate estate and distributed under intestate succession.

The custodian (usually a parent or grandparent) should contact the financial institution holding the account, provide a certified death certificate, and request guidance on the transfer process. Most institutions have a dedicated bereavement or estate services department.

Protecting Surviving Children: Why a Guardian Nomination Matters Now

The death of one child can sharpen a question that every parent should answer but most avoid: who would raise your surviving children if you could not?

You can nominate a preferred guardian in your will, but the nomination is not legally binding. The court must independently evaluate the child's best interests while preserving the legal rights of any surviving natural parent.

In a divorced family, the court must account for the legal rights of any surviving natural parent and the child's best interests; the will's nomination does not settle custody.

Formal letters of appointment from the court are required before any guardian can make legal, educational, or medical decisions for a minor. The nomination in the will starts the process, but it does not replace the court's involvement.

What to Include in a Guardian Nomination

If you are updating or drafting a will after your child's death, the guardian clause should cover:

Primary and alternate guardians. Name at least two choices in case your first choice is unable to serve.

Financial management. A guardian of the person (who raises the child) and a guardian of the estate (who manages the child's finances) can be different people. Separating these roles adds a layer of oversight.

Values and preferences. While not legally binding, a letter of intent attached to the will can express your wishes about education, religious upbringing, medical decisions, and contact with extended family. Courts consider these letters when evaluating competing petitions.

Review timeline. A guardian nomination written when your surviving child was three may not be appropriate when they are thirteen. Review the nomination every two to three years or after any major life change (a guardian moves, divorces, or develops health issues).

One Step to Take This Week

If you do not have a will, or if your will does not name a guardian for surviving children, this is the single most important legal task you can address in the month after your child's death. An estate attorney can draft a simple will with a guardian clause in a single meeting. If cost is a barrier, ask local legal aid organisations or bar association pro bono programs whether estate-planning help is available.

The When Your Child Dies (Minor) guide covers estate administration checklists, custodial account procedures, and a guardian nomination framework in its financial settlement chapter.