How the Court Approves the Sale of an Inherited Home When Co-Owners Include Minors
This FAQ-style guide explains, in plain language, the typical court steps required in Tennessee when a house is inherited by multiple co-owners and one or more co-owners are minors. It explains what you can expect, what filings the court will want, and how the proceeds for a minor are protected. This is educational information only and not legal advice.
Detailed Answer
Short summary: When minors share ownership of an inherited home, you normally must get the probate or juvenile court’s permission before selling the property. The court’s job is to make sure the sale is fair and that any money that belongs to the minor is protected (often by placing it in a blocked account, supervised trust, or under a conservator). The sale process will involve a petition, notice to interested parties, possible appointment of a guardian or conservator for the minor’s estate, a hearing, and a court order authorizing the sale and directing how sale proceeds are handled.
Step-by-step overview
- Confirm how title passed: Determine whether the home passed through probate (as part of a decedent’s estate) or passed outside probate (e.g., joint tenancy with right of survivorship or transfer by deed). If the property is still part of a probate estate, the personal representative (executor/administrator) may need court authority to sell. If the property passed directly to heirs (and a minor is an owner), a guardian of the minor’s estate (also called a conservator in some jurisdictions) will typically be required to manage the minor’s interest.
- Identify the proper court and filing: Most sales involving minor owners are handled in probate court. If there is an open estate, the personal representative files a petition to sell real estate for administration purposes. If not in probate, a petition to appoint a guardian of the minor’s estate (or a petition for court approval to sell a minor’s property interest) is filed in the probate court in the county where the minor lives or where the property sits. Tennessee courts provide guardianship and probate resources through the Administrative Office of the Courts: https://www.tncourts.gov/programs/probate/guardianship
- Prepare required documents: The petition must describe the property, state why sale is in the best interest of the minor and other owners, attach any purchase agreement if there is a prospective buyer (and appraisals or market valuations), list heirs and interested parties, and request specific relief (appointment of a conservator or permission to sell, authorization to pay commissions or expenses from sales proceeds, etc.).
- Provide notice to interested parties: Tennessee law requires giving notice to all heirs, co-owners, creditors, and sometimes to the minor’s other parent or legal guardian. The court will also often appoint a guardian ad litem or counsel to represent the minor’s interests in the sale process if needed.
- Court hearing and evidence: At the hearing the court evaluates whether the sale is fair and in the best interest of the minor. The court will want evidence of fair market value (appraisals or broker opinion), the reasons for selling (e.g., inability of co-owners to agree, need to divide proceeds), and documentation addressing how proceeds will be held for the minor (blocked account, conservatorship account, or trust). The court may require a competitive sale process or confirmation hearing if the buyer is a related party.
- Appointment of a guardian/conservator or approval of sale: If no guardian/conservator for the minor’s estate exists, the court may appoint one and authorize that fiduciary to sell the property or to approve the sale on the minor’s behalf. If a personal representative is handling the decedent’s estate, the court may grant the personal representative authority to sell and to allocate proceeds for the minor’s share to the conservatorship or blocked account.
- Bond, accounting, and safeguards: The court frequently requires the guardian/conservator to post a bond (or the court may waive bond when appropriate) and to provide regular accounting for use and investment of the minor’s funds. Sale proceeds belonging to the minor are typically required to be placed in a court-supervised account or trust until the minor reaches the age of majority or until another plan approved by the court is implemented.
- Court order and closing: If the court approves, it will issue a written order authorizing the sale and directing disbursement of funds. The sale can then close according to the purchase contract and the court’s order. The court’s order must be recorded (when required) so title can be transferred free of the minor’s prior interest.
Key Tennessee law and court resources
Tennessee handles guardianship, conservatorship, and probate matters through state statutes and local probate court procedures. Relevant state resources include the Tennessee Code (statutory provisions governing wills, estates, and guardianship) and the Tennessee courts’ probate and guardianship guidance pages. For general statutory reference and to locate specific provisions, see the Tennessee Code index: https://www.capitol.tn.gov/legislation/statutes.html. For practical guardianship and probate guidance, see the Administrative Office of the Courts’ probate/guardianship pages: https://www.tncourts.gov/programs/probate/guardianship.
Common situations and how courts typically rule
- If all co-owners (including the guardian of a minor’s estate) agree to the sale and the price is fair, courts often approve the sale after minimal review.
- If a minor’s co-owner is being outvoted or the sale is to a related party, courts require stronger evidence of fairness and may require independent appraisal, a guardian ad litem, and a confirmation hearing.
- If the property was the minor’s principal residence or has sentimental value, the court will weigh the best interest of the minor carefully and may refuse a sale unless the circumstances justify it.
Estimated timeline and costs
Expect the process to take several weeks to several months depending on appraisals, notice periods, whether a conservator must be appointed, and the court’s schedule. Costs may include court filing fees, appraisal fees, attorney fees, guardian or conservator fees, and possible bond premiums. The court may allow payment of reasonable fees from estate or sale proceeds.
Helpful Hints
- Start by obtaining the deed, any will, and the decedent’s probate documents (if there are any). Clear title issues early to avoid delays.
- Get at least one independent, written appraisal or broker’s market analysis. Courts rely heavily on evidence of fair market value.
- Notify everyone with an ownership interest and known heirs early. Proper notice prevents later challenges that can unsettle the sale.
- If a minor is involved, assume you will need court approval. Don’t close the sale without it—the buyer’s title insurer may require a court order anyway.
- Expect the court to want the minor’s share protected—commonly by a blocked account, conservatorship account, or trust—until the minor reaches majority or another court-approved arrangement is in place.
- Consider alternatives first: a buyout by another co-owner, partition by sale (court-supervised sale of the entire property with division of proceeds), or creating a trust for the minor’s share.
- Work with a probate or real estate attorney experienced with minors’ interests. They can prepare the petition, coordinate appraisals, handle notice, and represent minor interests at the hearing.
- Use court resources: Tennessee’s probate and guardianship pages explain local forms and procedure: https://www.tncourts.gov/programs/probate/guardianship