Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When an heir is a minor under Kentucky law, they cannot contract to sell or transfer real property. You have several options:
1. Appointment of a Guardian of the Property
Kentucky Revised Statutes (KRS) Chapter 387 governs guardianships. A family member or interested party can petition the District Court to appoint a guardian of the minor’s estate. Once appointed, the guardian must obtain court approval before selling or transferring real estate.
- Statutory Basis: KRS 387.150 – Order to sell or mortgage property. KRS 387.150
- Process: File a petition in the local District Court, notify interested parties, attend a hearing, and secure a court order setting sale terms.
2. Creation of a Trust
Establishing a trust under Kentucky’s Uniform Trust Code lets you avoid ongoing court supervision. A trustee manages—and may sell—the property for the minor’s benefit according to trust terms.
- Statutory Basis: KRS Chapter 386B – Uniform Trust Code. KRS 386B
- Process: Draft a trust agreement, appoint a trustee, transfer title into the trust, and follow distribution rules laid out in the document.
3. Partition Action and Court-Ordered Sale
If multiple owners hold interests, including a minor, any co-owner can file a partition action in Circuit Court. The court may divide the property or order its sale, then distribute proceeds among owners.
- Statutory Basis: KRS 391.230 – Partition of real estate. KRS 391.230
- Process: File a petition, provide notice, attend a hearing, and comply with the court’s order for division or sale. The minor’s share is held by a guardian or trustee.
4. Uniform Transfers to Minors Act (UTMA)
Under KRS Chapter 395, a custodian can hold property for a minor without full guardianship. This simplifies transfers up to the minor’s 18th birthday.
- Statutory Basis: KRS 395.005 – Uniform Transfers to Minors Act. KRS 395.005
- Process: Transfer title to a custodian for the minor. The custodian may manage or sell property for the minor’s benefit. Ownership passes to the minor at 18.
Helpful Hints
- Consult a probate attorney early to understand court procedures and timelines.
- Gather heirship documents: death certificates, wills, probate orders.
- Calculate the minor’s share precisely before filing any petition.
- Prepare for court costs, bond requirements, and possible appraisal fees.
- Expect guardianship or partition actions to take several months to resolve.