Selling an Inherited Home When Co-Owners Include Minors — Alaska Guide

Short answer — the path to court approval

When minors hold a share of inherited real property, you generally must get the probate or guardianship court involved. The court must protect the minors interest. Typical steps include: identify the estate or guardianship authority; obtain letters of administration or the guardians authority; file a petition asking the court to approve the proposed sale; provide notice to interested parties; have the court review price and terms (sometimes after an appraisal); and obtain a court order authorizing the sale with directions for how to hold and distribute the minors proceeds (for example in a blocked account or guardianship fund).

For Alaska statutes and general probate rules, see Alaska Statutes Title 13 (Probate, Protective Proceedings, and Trusts): https://www.akleg.gov/basis/statutes/13. For court-specific probate information, see the Alaska Court System probate pages: https://courts.alaska.gov/shc/probate.htm.

Detailed step-by-step process

1. Confirm how title and inheritance were created.

   Determine whether the decedent left a will and whether the property passed to co-owners by will, by intestacy, or via joint tenancy/beneficiary designation. If a personal representative (executor/administrator) was appointed in probate, that person may have authority to sell under the will or under court order.

2. Determine who has legal authority for the minors share.

   If the minor already has a guardian of the estate or a conservator, that guardian typically must join any sale or petition for sale. If the minor does not yet have a guardian of the estate, file for appointment of a guardian or ask the probate court to appoint a guardian ad litem to represent the minors interests during the sale process.

3. Obtain the necessary estate or guardianship paperwork.

   Collect the death certificate, letters testamentary or letters of administration (if the estate is open), guardianship letters (if one is appointed), title report, and any will. These documents are typically attachments to the petition the court will consider.

4. Get a professional property valuation.

   Courts often require an appraisal or other market evidence showing the sale price is fair. Obtain a licensed appraisal or comparative market analysis so the court can review whether the proposed sale is in the minors best interest.

5. Prepare and file a petition for court approval of sale.

   The petition usually describes the property, the ownership shares, the proposed buyer and sale terms, the appraisal or valuation, why sale is necessary or advisable, and how proceeds will be handled for the minor. Attach the proposed purchase contract if you have one.

6. Provide notice to all interested parties.

   Alaska courts require notice to heirs, beneficiaries, guardians, and sometimes child support agencies when minors are involved. The court will specify the required notice method and timing so parties can object before the hearing.

7. Court hearing and review.

   The court may hold a hearing where a judge evaluates whether the sale serves the minors best interest. The judge will review evidence about fair market value, the buyer (especially if related to the family), and proposed distribution of proceeds.

8. Obtain a signed court order authorizing the sale.

   If the judge approves, the court issues an order permitting the sale and directing how the minors proceeds must be held or invested (often in a blocked account, guardianship accounts, or a court-approved trust). The order may require the guardian to post a bond, or to seek subsequent court approval for distribution.

9. Close the sale and comply with the courts directions for funds.

   Complete the closing using the court order as authorization. Deposit the minors portion of proceeds into the court-ordered account or trust, and file a closing accounting with the court as required.

Key legal protections courts typically require for minors

• Appointment of a guardian or guardian ad litem to represent the minors interest in the sale.
• Independent appraisal or evidence of fair market value.
• Notice to all interested parties and time to object before sale approval.
• Order telling how to hold and invest the minors proceeds (blocked account, guardianship account, or trust).
• Periodic accountings and, sometimes, court approval to disburse funds for the minors benefit.

Documents you will typically need

• Death certificate.
• Will (if any) and letters testamentary or letters of administration from probate.
• Guardianship or conservatorship letters (if guardians are already appointed).
• Title report or deed showing the heirs or co-owners.
• Appraisal or CMA (comparative market analysis).
• Proposed purchase agreement or buyer contract.
• Petition for sale and proposed court order.

Typical timeline and costs

Timing depends on court schedules and whether a guardianship or probate is already open. If an estate or guardianship is in place and everyone agrees, you can sometimes get approval in a few weeks to a few months. If a new guardianship must be opened, or if there are objections, the process can take months. Costs include filing fees, appraisal fees, attorney fees, court-approved guardian fees, and possibly bonding costs.

When a court-ordered sale may not be necessary

In limited cases, minors interests may be sold without a formal court sale if the minors guardian has explicit authority to manage and sell the property under a guardianship order, or if the co-owners can agree and the court previously authorized the guardian to sell the property. Always verify with the court or counsel before closing any sale that involves a minors interest.

After the sale — handling proceeds and accounting

The court almost always directs how to handle the minors share. Common requirements include depositing funds into a blocked account, a custodial account with court supervision, or a structured trust. Guardians must typically file accountings and seek court permission to use funds for major items. Keep clear records and follow the courts orders to avoid later liability.

When to get a lawyer

Consider hiring an Alaska probate or guardianship attorney when a minors interest is involved, when title is unclear, when family members disagree, or when the sale price or buyer is unusual. An attorney can prepare the petition, manage notices, obtain appraisals, represent interests at hearing, and ensure the courts order protects the minors funds.

Helpful Hints

• Start by locating the will and any open probate or guardianship file; that speeds the process.
• Obtain a written appraisal before proposing a sale; courts expect independent valuation when minors are involved.
• Give clear, early notice to all heirs, guardians, and potential creditors to reduce the chance of surprise objections.
• Use the proposed purchase agreement as an attachment to your petition so the judge can see exact sale terms.
• Expect to deposit the minors proceeds in a court-approved account rather than give funds directly to a guardian.
• Consider tax implications (basis step-up at death may reduce capital gains) and consult a tax advisor for sale reporting.
• Be prepared to explain why a sale, rather than keeping the property, benefits the minor(s) to the court.