Detailed Answer
When a minor child inherits real property in Wisconsin, the child lacks legal capacity to convey or encumber that property. Wisconsin law provides three primary pathways for selling or transferring such property under court supervision to protect the minor’s interests.
1. Guardianship of the Estate
Under Wisconsin Statutes Chapter 54, a guardian of the minor’s estate may be appointed to manage the minor’s assets, including real property. The guardian must petition the county court for authority to sell or lease the property.
- Sale petition: Wis. Stat. 54.65 provides the procedure for filing a petition to sell a minor’s real property. 54.65 Sale of Property of a Minor.
- Powers of guardian: Wis. Stat. 54.07 limits a guardian’s power to sell or lease real estate without court approval. 54.07 Powers of Guardians.
- Notice requirements: The guardian must notify parents, the minor (if age-appropriate), and other interested parties at least 10 days before the sale hearing per Wis. Stat. 54.66. 54.66 Notice.
2. Sale Through Probate Administration
If the minor inherits property through a decedent’s estate, the personal representative can seek court approval to sell the real property as part of estate administration.
- Representative’s authority: Wis. Stat. 851.04(3) grants the personal representative power to sell real estate subject to court order. 851.04(3) Powers of Personal Representative.
- Guardian ad litem: The court often appoints a guardian ad litem to represent the minor’s interests and review the fairness of the sale.
- Court confirmation: After notice to all heirs (including the minor), the court holds a confirmation hearing before authorizing the sale.
3. Establishing a Trust
A trust under the Wisconsin Trust Code can hold the minor’s inherited property. A trustee has the statutory authority to manage and sell trust assets for the benefit of the minor without a separate guardianship proceeding.
- Trust creation: The decedent or guardian may create a trust naming the minor as beneficiary.
- Trustee powers: Wis. Stat. 701.0402 authorizes a trustee to sell real estate held in trust. 701.0402 Trustee’s Powers.
- Court involvement: In some cases, the court must still approve the initial transfer of the minor’s property into the trust.
Helpful Hints
- Plan ahead: Start guardianship or probate steps early to avoid delays in sale proceeds.
- Obtain valuations: Courts require professional appraisals to ensure the sale price is fair.
- Consider tax consequences: Sale of inherited property may trigger capital gains or gift tax issues.
- Monitor guardian fees: Wisconsin limits guardian fees; courts review reasonableness per Wis. Stat. 54.06.
- Work with professionals: Engage a probate attorney, guardian ad litem, and real estate agent experienced in minor’s property sales.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney to address your specific situation.