What happens to our children’s inheritance if we only have wills and our kids are still minors when we die? – North Carolina

Short Answer

In North Carolina, minor children generally cannot receive and control an inheritance outright. If a will leaves assets directly to a minor, the inheritance usually has to be managed by an adult through a court-supervised guardianship of the child’s property, a custodianship under the North Carolina Uniform Transfers to Minors Act (UTMA), or a trust structure created in the will. Without planning for that management piece, the Clerk of Superior Court often becomes involved, and the process can require extra filings, oversight, and timing delays.

Understanding the Problem

In North Carolina estate planning, the key question is what happens when parents die with only wills in place and their children are still under 18 at the time the inheritance becomes payable. The decision point is whether the will includes a built-in way for an adult to legally hold, manage, and spend the child’s inheritance until the child reaches adulthood. If the will does not address that, the estate administration often triggers a separate court process to appoint someone to manage the child’s share.

Apply the Law

Under North Carolina law, a will can name a recommended guardian for minor children, but the Clerk of Superior Court makes the appointment based on the child’s best interests. Separately, when a minor is entitled to money or property from an estate, the personal representative typically cannot simply hand it to the child. Instead, the inheritance is commonly handled in one of three ways: (1) a guardian of the minor’s estate (property) appointed by the clerk, (2) a UTMA custodianship if the will authorizes or the law allows it, or (3) a trust (often a testamentary trust) that holds the child’s share and names a trustee to manage it. The right approach depends on what the will says, the type of asset, and the amount involved.

Key Requirements

  • A legally authorized adult manager must exist: A minor generally needs an adult (guardian of the estate, UTMA custodian, or trustee) with clear legal authority to receive and manage the inheritance.
  • The Clerk of Superior Court often must approve the arrangement: If the will does not create a trust and does not clearly authorize a UTMA transfer, the clerk may require a guardianship of the estate or other court-approved handling before assets can be distributed.
  • The will should separate “who raises the child” from “who manages the money”: A will can recommend a guardian for the child’s care, but the person managing the inheritance may be a different person (or a trust company) to reduce conflicts and improve oversight.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, a married couple in North Carolina has (or will have) minor children when the wills would take effect. If the wills leave assets to the children outright without a trust or UTMA direction, the personal representative will likely need a court-approved mechanism before distributing the children’s shares. If the wills instead create a testamentary trust (or clearly authorize a UTMA custodian), an adult trustee/custodian can usually receive and manage the inheritance for the children without a separate guardianship of the estate for each child.

Process & Timing

  1. Who files: The estate’s personal representative (executor) opens the estate. Where: The Clerk of Superior Court in the North Carolina county with proper venue. What: Probate filings to qualify the personal representative; then additional filings if a minor’s share requires a guardian of the estate or other court approval. When: As soon as practical after death; some child-related claims have specific timing rules once letters issue.
  2. If the will leaves assets directly to a minor: The clerk may require appointment of a guardian of the minor’s estate (property) before the personal representative can distribute the inheritance, or may direct another legally permitted method (such as paying certain funds into the clerk’s office in limited situations).
  3. If the will authorizes UTMA or creates a trust: The personal representative may transfer the child’s share to the named UTMA custodian (if properly authorized) or to the trustee of the testamentary trust, and the custodian/trustee then manages the funds under the terms of the will and applicable law.

Exceptions & Pitfalls

  • Confusing “guardian of the child” with “guardian of the money”: A will can recommend who should care for the children, but that does not automatically give that person authority to receive and manage inherited funds.
  • Leaving a minor an outright share without a management plan: This often triggers extra court involvement (guardianship of the estate, bonding issues, accountings, and approval requirements), which can slow distributions and increase administrative burden.
  • Relying on UTMA without clear instructions: UTMA can be useful, but the will should clearly nominate a custodian and authorize the transfer when appropriate; otherwise, the personal representative may need court approval depending on the amount and circumstances.
  • Missing the child’s allowance timing: Even with a will, the child’s allowance is a separate statutory right with a specific filing window once letters issue in an estate.

Conclusion

In North Carolina, if parents die with only wills and their children are still minors, the children usually cannot receive inheritance outright. The child’s share typically must be managed by an adult through a court-appointed guardian of the estate, a UTMA custodianship, or a trust created in the will. A practical next step is to draft wills that either create a testamentary trust for each child or clearly authorize a UTMA custodian, so the personal representative can distribute the child’s share to the proper fiduciary without avoidable court delays.

Talk to a Estate Planning Attorney

If a family is dealing with wills for parents of minor children and concerns about who will manage a child’s inheritance, our firm has experienced attorneys who can help explain the options and timelines under North Carolina law. Call us today at [CONTACT NUMBER].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Estate Planning Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.