Detailed Answer
Under Utah law, minors lack legal capacity to enter into binding contracts, including deeds or real estate sales. To sell or transfer real property inherited by a minor, a court must appoint someone to act on the minor’s behalf or directly authorize the transaction. Below are four common pathways:
1. Probate Sale by Personal Representative
If the property remains part of a decedent’s estate, the personal representative (PR) may sell it under Utah Code §75-7-502 (Title 75, §75-7-502). The PR must:
- Obtain court orders approving the sale.
- Ensure the sale price is reasonable and in the estate’s best interest.
- Deposit the minor’s share of proceeds with the court or in a guardianship account.
2. Guardianship Sale
A family member or interested party can petition the court to appoint a guardian for the minor under Utah Code §75-5-316 (Title 75, §75-5-316). Once appointed, the guardian must:
- File a petition to sell or mortgage the real property.
- Provide notice to interested parties and hold a hearing.
- Demonstrate to the court that the sale serves the minor’s best interests.
3. Uniform Transfers to Minors Act (UTMA) Custodianship
When property transfers under the UTMA, a custodian holds and manages assets for the minor under Utah Code §75-2b-106 (Title 75, §75-2b-106). While the custodian may handle the minor’s property, selling real estate generally requires court approval to ensure the transaction aligns with the minor’s best interests.
4. Partition Action
If the property is co-owned with adult heirs, any co-owner can initiate a partition action under Utah Rule of Civil Procedure 33 (URCP 33). The court will:
- Appoint a guardian ad litem to represent the minor’s interests.
- Order the property sold or physically divided.
- Ensure the minor’s net proceeds are held in a protected account until distribution.
Helpful Hints
- File probate or guardianship petitions promptly to prevent delays in managing the minor’s property.
- Obtain at least one independent appraisal to support fair market value in court filings.
- Maintain detailed records of all transactions and fund deposits on the minor’s behalf.
- Consider age-expiration of UTMA custodianship (usually age 21) and guardianship fund distribution rules.
- Consult a Utah probate or guardianship attorney to navigate court procedures and filings.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. For guidance tailored to your circumstances, consult a qualified Utah attorney.