Detailed Answer
When an heir to real property is a minor, Delaware law prevents the minor from conveying legal title without court oversight. You have several options to sell or transfer the property:
1. Appoint a Guardian of the Estate
Under 12 Del. C. § 3908 (Powers of Guardian) and § 3913 (Sale of Real Estate), the court may appoint a guardian of the estate. This guardian can petition the Delaware Court of Chancery or Family Court to approve a sale or transfer of the minor’s interest. The court will review the transaction to ensure the sale is in the minor’s best interest and may impose conditions.
2. Use a Court-Approved Sale
If a sale serves the minor’s best interest, the guardian can file a petition under 12 Del. C. § 3913. The court will set a hearing, evaluate offers, and authorize the sale. Proceeds must be deposited in a blocked account or managed by the guardian per court order.
3. Establish a Trust
You can transfer the property into a trust for the minor. A trustee manages or sells the property under the trust terms. This method avoids guardianship fees and allows customized management. Draft the trust instrument carefully to align with Delaware trust law.
4. Custodial Transfer Under UTMA
Delaware’s Uniform Transfers to Minors Act (12 Del. C. Ch. 34, UTMA) permits adults to transfer certain assets to a custodian on behalf of a minor. While UTMA typically covers personal property and securities, you may liquidate real estate under guardianship and deposit the proceeds into a custodial account for the minor.
Helpful Hints
- Engage a probate attorney early to navigate court filings and hearings.
- Gather a professional appraisal to support the sale price in court.
- Consider tax implications, including capital gains and minor’s tax rates.
- Keep detailed records of all transactions for court compliance.
- Explore family agreements or buyouts to reduce court costs.
Disclaimer: This article provides educational information and does not constitute legal advice. Consult a licensed attorney in Delaware for guidance tailored to your situation.