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Your Minor Child has Inherited Substantial Property, Now What?

Although in Florida natural guardians (birth or adoptive parents) have all the rights and authority over their minor child’s “person”, natural guardians do not have all of the rights and power over the minor’s “property”. Parents are authorized on behalf of their minor children to settle, collect, receive, and manage real or personal property distributed from an estate or trust, when the amounts received, DO NOT exceed $15,000.00. Florida law requires the court to appoint a guardian of the property for minors, if a child receives an inheritance or proceeds of a lawsuit or insurance policy or other property exceeding $15,000.00.

You have received notification that your minor child (the potential Ward) is to inherit significant assets. Your first step is to schedule an initial consultation with a knowledgeable and experienced Florida guardianship attorney.

Next, you will need to gather certain information. Below is a list of documentation and information that will be helpful to bring to your initial consultation with the guardianship attorney:

• Detailed list of any person having a right to be notified of the guardianship proceedings, such as the minor child’s other parent. This is critical if the parents are divorced, and share custody of the child.
• A copy of the Will, trust, or any other documents pertaining to any inherited assets of the minor child.
• Copies of financial account statements showing the assets held in investment or other financial institution that the minor child will be inheriting.  

To become a guardian of the property of a minor, the person intending to be the guardian must file a petition in the state court in the county where the Ward lives.  The guardian may be a parent, another family member, a close friend, or a local official responsible for a minor’s welfare. The guardianship petition typically names the potential guardian and provides information about that person’s relationship, if any, to the minor child. The petition will also provide relevant information about the property the minor child is to inherit. If the petitioner is not a parent, the petition will contain information about the minor’s parents and whether and where they are living.

Notice of the time and place of the guardianship hearing MUST be given to the potential Ward as well as any other interested parties, such as parents.  In appointing a guardian of the property of a minor, the court will consider which individual’s appointment will be in the best interest of the minor. Preferred guardians for a minor are parents and then other relatives. However, the primary consideration in selecting a guardian is the best interests of the minor child.  If the parents are still alive, prior to a non-parent being chosen as a guardian, typically the parents must be determined to be unable to serve as guardian, or unfit to look after the best interests of the minor child, before the court will appoint the non-parent.

If a guardianship is contested, the court may appoint a disinterested third party to investigate and make recommendations. Usually called guardian ad litem, this person evaluates both the necessity for a guardianship, and the appropriateness of the proposed guardian. If the court finds sufficient evidence to order the guardianship after a hearing is held, the court may issue subsequent orders, which govern the relationship and the guardian’s actions to the minor child (the Ward).

The relationship of a guardian towards a Ward is that of a fiduciary. This means that the guardian is obligated to act in the best interests of the Ward and is held to a higher standard than the average person. The court supervises the guardian to assure proper actions on behalf of the Ward. In Florida, Guardians are required to file an Initial Inventory listing the assets in the Guardianship. Guardians also must prepare and file annual accountings with the court. Often, a guardian may be reimbursed for attorney fees related to the guardianship and other guardianship related expenses.

For assistance regarding these issues or other Guardianship or Probate Administration matters please contact Ann Marie Gilden, Esquire of Ann Marie Giordano Gilden, P.A. at (407) 732-7600, and visit my website at www.AnnMarieGildenLaw.com.  

This information is provided only as educational materials, and does not constitute the providing of legal advice, and does not create any attorney client relationship.