Detailed Answer
When an heir is a minor, Arkansas law prohibits them from executing a binding real estate sale or transfer on their own. The court must protect the minor’s interest. Here are the primary routes:
1. Appointment of a Guardian of the Estate
A parent, relative, or interested party can petition the probate court to appoint a guardian to manage the minor’s assets. Once appointed, the guardian may petition for approval to sell or transfer the property on the minor’s behalf. The court reviews the sale terms, confirms fair market value, and ensures the minor’s best interest. Key statute: Ark. Code Ann. § 28-66-514.
2. Court-Ordered Sale or Lease Without Formal Guardianship
If all co-heirs (including adults) agree, a party may seek a direct court order to sell or lease the minor’s share. The court appoints a guardian ad litem to represent the minor. Sale proceeds are placed in a blocked account until the minor reaches majority or a court orders distribution. See Ark. Code Ann. § 28-66-307.
3. Partition Action
When property co-owners cannot agree on management or sale, any co-owner can file a partition action. The court may order physical division or sale and distribute proceeds. A guardian ad litem represents the minor’s share throughout. Governing statute: Ark. Code Ann. § 18-60-501 et seq..
4. Transfer into a Trust or under the Arkansas Uniform Transfers to Minors Act (UTMA)
Grantors can transfer inherited property into a trust naming the minor as beneficiary. The trustee holds and manages the asset until the minor reaches the trust’s termination age. Alternatively, the Arkansas UTMA allows gifting real property to a minor custodially. A custodian manages the asset for the child until majority. See Ark. Code Ann. § 18-11-101 et seq..
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Contact a licensed Arkansas attorney to discuss your specific situation.
Helpful Hints
- File the correct probate petition promptly to avoid delays.
- Gather a professional appraisal to support fair market value.
- Notify all interested parties and follow court notice requirements.
- Consider a special guardian ad litem if multiple minors or large estates are involved.
- Keep detailed records of all transactions and court orders.