Detailed Answer
When an heir is a minor, Tennessee law requires court supervision for any sale or transfer of real property. Minors lack legal capacity to enter binding contracts. Below are the most common methods:
1. Guardianship Sale via Probate Court
The minor’s guardian may petition the probate or chancery court for authority to sell the property. Under Tenn. Code Ann. § 34-1-112, the court can approve a public auction or private sale if it finds the sale is in the ward’s best interest. The court will impose bond requirements and direct distribution of proceeds according to court order.
2. Testamentary or Living Trust
A parent or testator can transfer real property into a trust for the minor’s benefit. A trustee manages and, when appropriate, sells or transfers the property. The Tennessee Uniform Trust Code (Tenn. Code Ann. § 35-15-101 et seq.) defines trustee powers and duties. Trust terms can specify sale conditions, distribution ages, and reinvestment rules.
3. Uniform Transfers to Minors Act (UTMA) Custodianship
Under Tenn. Code Ann. § 35-15-301 et seq. (UTMA), a custodian can hold assets—including certain real property interests—in a custodial account for the minor. The custodian manages, sells, or invests the assets for the minor’s benefit, and the minor gains full control at the statutory age.
4. Partition Action with Guardian ad Litem
If co-owners disagree about keeping or selling jointly held property, any co-owner may file a partition suit in chancery court. When a co-owner is a minor, the court appoints a guardian ad litem to protect the minor’s interest throughout the action. After evaluation, the court orders either a sale or physical division of the property (Tenn. Code Ann. § 29-27-101 et seq.).
Helpful Hints
- Consult a probate or chancery attorney early to identify the most suitable approach under Tennessee law.
- Gather key documents: death certificate, will or trust instruments, and current deed records.
- Be prepared to show the court how the proposed sale or transfer serves the minor’s best interests.
- Expect court timelines of several months and associated filing, appraisal, and bond fees.
- Consider a trust for long-term management if retaining property for the minor is a priority.
Disclaimer: This article provides general information on Tennessee law and is not legal advice. Consult a qualified attorney to address your specific circumstances.