Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified Michigan attorney to address your specific situation.
Detailed Answer
1. Appointment of a Guardian of the Estate
Under the Michigan Estates and Protected Individuals Code (EPIC), the probate court may appoint a guardian of the estate to manage property owned by a minor heir. See MCL 700.5303. Once appointed, the guardian can petition for court approval to sell or transfer the minor’s real property. See MCL 700.5314. The court will require notice to interested parties, a guardian bond, and a hearing. If approved, the guardian executes documents on the minor’s behalf, and net proceeds are held for the minor until age 18.
2. Sale by Estate Personal Representative
If real property passes to a minor through a decedent’s estate, the personal representative may seek probate court permission to sell the minor’s share. Under MCL 700.3712, the personal representative can sell real estate at public or private sale. The court supervises the transaction and directs proceeds into a blocked account or trust for the minor.
3. Partition Action with Guardian ad Litem
Co-owners can file a partition action under MCL 600.3201 to force a sale of the entire property. The court appoints a guardian ad litem to protect the minor’s interest. After sale, the court divides proceeds among co-owners, including the minor, with funds held in a blocked account.
4. Establishing a Trust for the Minor
Heirs may transfer the minor’s share into a trust created under EPIC or the Trust Code. A trustee holds title and can sell or manage the property under the trust terms. Proceeds benefit the minor until age 18.
5. Deferring Sale Until Majority
All heirs may agree to postpone sale or transfer until the minor turns 18. This avoids court involvement but delays liquidity for all heirs.
Helpful Hints
- File a guardianship petition at the local probate court promptly.
- Provide notice to all heirs, creditors, and interested parties.
- Secure a court-ordered guardian bond to protect the minor’s funds.
- Attend all hearings and file required accountings and reports.
- Compare cost and time of guardianship versus a partition action.
- Consider a trust to hold proceeds if multiple transactions are likely.
- Consult an estate planning attorney for strategy and compliance.