Detailed Answer
Under Hawaii law, minors cannot legally consent to the sale or transfer of real property because they lack contractual capacity. To protect the minor’s interests, the probate or circuit court must supervise any transaction involving a minor heir. Here are the primary pathways:
1. Guardianship and Court-Authorized Sale
Under Hawaii Revised Statutes (HRS) chapter 560 (Uniform Probate Code), a guardian of the minor’s estate can be appointed. The guardian may petition the probate court to authorize the sale or transfer of the minor’s interest in real property. The court will review whether the sale is prudent, fair, and necessary for the minor’s welfare. If approved, the court issues an order confirming the sale, and sale proceeds are held in the guardianship account for the minor.
HRS §560-5-507 (Court-Authorized Sales)
2. Partition Action with Guardian ad Litem
If the property is co-owned by multiple heirs, any co-owner can initiate a partition suit under HRS chapter 669. The court must appoint a guardian ad litem to represent the minor’s interests. The judge may partition the land in kind (divide the parcel) or order a sale and distribute net proceeds proportionally among the heirs.
HRS §669-1 (Partition of Land)
3. Transfer to a Trust or Custodial Account
Parents or legal guardians may establish a trust or custodial account for the minor and transfer the heir’s interest into that vehicle. A trustee or custodian holds title and can sell or manage the property under terms that protect the minor. While Hawaii does not follow a stand-alone Uniform Transfers to Minors Act, a private trust document can specify how and when sale proceeds benefit the minor. Always review trust requirements under HRS chapter 554A or consult counsel.
4. Sale by Personal Representative in Probate
If the decedent’s estate is in probate and a minor heir holds an interest, the personal representative (executor) can request court approval to sell the minor’s share along with the rest of the estate. The probate court must find the sale necessary to pay debts or distribute assets fairly.
HRS §560:3-1001 (Sale of Estate Property)
Helpful Hints
- Engage a probate attorney experienced with guardianship sales in Hawaii.
- Gather a recent property appraisal to justify the sale price to the court.
- Prepare a clear accounting plan for how sale proceeds serve the minor’s long-term needs.
- Allow extra time—court-supervised transactions often require multiple hearings.
- Discuss tax implications with a CPA; special rules apply when selling inherited property.
- If co-owners object, consider mediation before filing a partition suit.
- Keep all court orders and account statements organized for annual reports.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney before taking action.