Guardianship of the Estate of a Minor in California: When a Child Has Money or Property

Two Separate Guardianships

California recognizes two distinct types of guardianship for minors, and they serve completely different purposes. Guardianship of the person gives a caregiver daily custody — residence, school, medical decisions. Guardianship of the estate gives a fiduciary control over a child's financial assets.

They are separate legal proceedings. You can have one without the other, or you can petition for both simultaneously. The forms, obligations, and court oversight differ.

When Estate Guardianship Applies

A guardianship of the estate typically arises when a minor:

• Inherits money or property after a parent's or relative's death
• Receives a personal injury settlement or insurance payout
• Owns real estate or financial accounts
• Is owed income (such as child acting earnings or royalties)

California Probate Code Sections 3400–3401 allow a parent entitled to the child's custody to receive and hold money or property in trust if the minor's total estate does not exceed $5,000 and the parent provides the required sworn written assurance. Other protective arrangements may also be available; a larger estate does not automatically require a guardianship of the estate.

How It Differs from Person Guardianship

The estate guardian has a fiduciary duty to the child. That means every financial decision must be in the child's best interest, and the court reviews periodic accountings, generally beginning one year after appointment and at least every two years after that.

The Bond Requirement

Estate guardians must typically post a surety bond equal to the value of the child's personal property plus one year's estimated income. The bond protects the child's assets if the guardian mismanages funds. The premium is paid annually and depends on the bond amount — a $100,000 bond might cost $500 to $1,000 per year in premiums.

Courts may waive the bond in limited circumstances, such as when all assets are placed in a blocked account that requires a court order to access.

Blocked Accounts

A common arrangement for minor settlements and inheritances: the court orders the funds deposited into a blocked bank account. The account cannot be touched without a separate court order, which effectively protects the child's money without requiring the guardian to post a large bond. The funds are released when the child turns 18.

Do You Need Both?

If you are raising a relative's child and the child has no significant assets, you only need guardianship of the person. Most kinship caregivers fall into this category.

If the child has assets but you are not the caregiver, you may only need guardianship of the estate. A parent can retain physical custody while a third party manages the child's inheritance.

If you are the caregiver and the child also has assets, you can petition for both in the same proceeding. The forms are different, the obligations stack, and the court treats them as parallel matters.

An Alternative: CUTMA Custodianship

For smaller financial transfers, the California Uniform Transfers to Minors Act (Probate Code Sections 3900–3925) allows an adult to hold money, securities, or property as a custodian for a minor without a full estate guardianship. CUTMA custodianship is simpler and avoids the court oversight, bonding, and periodic accounting requirements. But it only works for transfers made under CUTMA — it cannot be used retroactively for assets the child already owns.

What Our Guide Covers

The California Guardianship & Custody Court Process Guide focuses primarily on guardianship of the person — the legal authority kinship caregivers need to care for, enroll, and make medical decisions for a child. It explains when an estate guardianship is also needed and how the two proceedings interact, so you know when to seek additional help.

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