We believe that you may deliver the funds in your deceased customer’s account to the minor beneficiary’s surviving parent if they provide the bank with an affidavit signed by the surviving parent stating that (1) the minor’s estate does not exceed $10,000, (2) no representative has been appointed for the minor’s estate, and (3) the affiant is the minor’s parent. When presented with an affidavit containing these statements, the Illinois Probate Act permits “any person or corporation . . . holding personal estate” of a minor to “deliver the personal estate to the affiant.” After delivering the payment, your bank will be released to the same extent as if the payment had been made to the minor’s legally qualified representative.
However, if a representative or a guardian has been appointed for the minor’s estate, we recommend requiring the representative or guardian to produce a copy of the court order establishing their appointment and authority to manage the minor’s estate before delivering the account funds. While the appointment of a representative or guardian would be unusual, as there is a presumption that a guardian or representative will not be appointed on behalf of a minor who has a living parent, this assumption may be rebutted by evidence.
For resources related to our guidance, please see:
- Illinois Probate Act, 755 ILCS 5/25-2 (“When appointment of representative of ward unnecessary. Upon receiving an affidavit that the personal estate of a ward does not exceed $10,000 in value, that no representative has been appointed for his estate and that the affiant is a parent or a person standing in loco parentis to the minor . . . any person or corporation indebted to or holding personal estate of the ward may pay the amount of the indebtedness or deliver the personal estate to the affiant. In the same manner and upon like proof, any person or corporation having the responsibility for the issuance or transfer of stocks, bonds or other personal estate may issue or transfer the stocks, bonds or other personal estate to or in the name of the affiant. Upon the payment, delivery, transfer or issuance pursuant to the affidavit, the person or corporation is released to the same extent as if the payment, delivery, transfer or issuance had been made to the legally qualified representative of the ward and is not required to see to the application or disposition of the property.”)
- Illinois Probate Act, 755 ILCS 5/1-2.17 (“‘Ward’ includes a minor or a person with a disability.”)
- Illinois Probate Act, 755 ILCS 5/11-1 (“‘Minor’ means is a person who has not attained the age of 18 years. A person who has attained the age of 18 years is of legal age for all purposes except as otherwise provided in the Illinois Uniform Transfers to Minors Act.”)
- Illinois Probate Act, 755 ILCS 5/1-2.15 (“‘Representative’ includes executor, administrator, administrator to collect, standby guardian, guardian and temporary guardian.”)
- Illinois Probate Act, 755 ILCS 5/1-2.08 (“‘Guardian’ includes a representative of a minor and a representative of a person under legal disability.”)
- Illinois Probate Act, 755 ILCS 5/11-13 (“Before a guardian of a minor may act, the guardian shall be appointed by the court of the proper county and, in the case of a guardian of the minor's estate, the guardian shall give the bond prescribed in Section 12-2.
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(b) The guardian or other representative of the ward's estate shall have the care, management and investment of the estate, shall manage the estate frugally and shall apply the income and principal of the estate so far as necessary for the comfort and suitable support and education of the ward, his children, and persons related by blood or marriage who are dependent upon or entitled to support from him, or for any other purpose which the court deems to be for the best interests of the ward, and the court may approve the making on behalf of the ward of such agreements as the court determines to be for the ward's best interests.”)
- Illinois Probate Act, 755 ILCS 5/11-5(b) (“The court lacks jurisdiction to proceed on a petition for the appointment of a guardian of a minor if it finds that (i) the minor has a living parent, adoptive parent or adjudicated parent, whose parental rights have not been terminated, whose whereabouts are known, and who is willing and able to make and carry out day-to-day child care decisions concerning the minor, unless: (1) the parent or parents voluntarily relinquished physical custody of the minor; (2) after receiving notice of the hearing under Section 11-10.1, the parent or parents fail to object to the appointment at the hearing on the petition; (3) the parent or parents consent to the appointment as evidenced by a written document that has been notarized and dated, or by a personal appearance and consent in open court; or (4) the parent or parents, due to an administrative separation, are unable to give consent to the appointment in person or by a notarized, written document as evidenced by a sworn affidavit submitted by the petitioner describing the parent's or parents' inability to receive notice or give consent; or (ii) there is a guardian for the minor appointed by a court of competent jurisdiction. There shall be a rebuttable presumption that a parent of a minor is willing and able to make and carry out day-to-day child care decisions concerning the minor, but the presumption may be rebutted by a preponderance of the evidence. If a short-term guardian has been appointed for the minor prior to the filing of the petition and the petitioner for guardianship is not the short-term guardian, there shall be a rebuttable presumption that it is in the best interest of the minor to remain in the care of the short-term guardian. The petitioner shall have the burden of proving by a preponderance of the evidence that it is not in the child's best interest to remain with the short-term guardian.”)