How Missouri Law Handles Inheritances for Minors: A Guide for Families

Overview

When a minor inherits assets in Missouri, legal safeguards are in place to protect those assets until adulthood. The process is designed to ensure responsible management, often through a conservatorship, to safeguard a child’s financial future. Understanding Missouri’s laws on inheritance for minors—including probate, conservatorship, and alternatives—is the key to navigating this process.

When Is a Conservatorship Required?

Under Missouri law (RSMo § 475.130), if a minor (under 18) inherits more than a certain amount (commonly between $10,000 and $35,000, depending on jurisdiction), the court usually requires a conservatorship. This legal arrangement ensures the inheritance is managed until the minor turns 18.

·       Court supervision is mandatory, even for modest inheritances.

·       If the inheritance is below the threshold, alternatives such as custodial accounts may be available.

Role and Duties of a Conservator

A conservator is a court-appointed adult—often a parent or trusted relative—who manages the minor’s inheritance under strict guidelines.

·       Protects and manages the minor’s assets, including cash, property, and investments.

·       Makes prudent financial decisions regarding investments, expenses, and taxes.

·       Files annual reports with the court to ensure transparency.

Conservators may be able to handle transactions without additional court approval. Major decisions, such as selling property, require court permission.

Establishing a Conservatorship

The process to establish a conservatorship involves several steps:

·       Filing a petition in the probate court where the minor resides.

·       Providing details about the minor, inheritance value, and the proposed conservator.

·       Notifying interested parties, including parents, guardians, and the minor (if age 14+).

·       Attending a court hearing where a judge approves the conservatorship.

This process ensures accountability and prevents misuse of the minor’s funds.

Alternatives to Conservatorship

If the inheritance is below the threshold, there may be alternatives such as:

·       Custodial Accounts (UTMA): Funds are held until the minor turns 21.

·       Restricted Accounts: Withdrawals require court approval.

·       Direct Distribution to a Parent/Guardian: Requires court authorization.

These options may simplify the process for small inheritances.

Conservatorship and Probate

Most minor inheritances are distributed through probate, regardless of whether there is a will.

·       The personal representative (executor or administrator) handles the estate distribution.

·       The probate court oversees the protection of the minor’s share.

·       The conservator manages the inheritance until the minor reaches adulthood.