Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
1. Appoint a Guardian of the Minor’s Estate
Under Indiana Code §29-1-8-2, you petition the probate court to appoint a guardian for the minor heir’s property. A court-appointed guardian manages the real estate and can file a petition to sell or lease the property. The court reviews the petition, confirms the sale serves the minor’s best interests, and sets the terms of the transaction.
2. Seek Court Approval for Sale in Probate
If the decedent’s estate passes through probate, the personal representative may request court authorization to sell real property under Indiana Code §29-3-6-1. The representative must notify all heirs, including the minor. The court may approve the sale when it determines the transaction maximizes value and protects the minor’s share.
3. File a Partition Action When Co-Heirs Hold Undivided Interests
When adults and a minor co-own inherited land, any heir can file a partition action under Indiana Code §32-17-5. The court appoints a guardian ad litem to represent the minor’s interests and may order the property sold or physically divided. Sale proceeds distribute according to each heir’s share.
4. Use a Family Settlement or Compromise Agreement
Heirs may propose a family settlement under Indiana Code §29-1-10-13 to adjust ownership interests. The court must approve any agreement that disposes of a minor’s share. A guardian or guardian ad litem reviews terms to ensure fair treatment of the minor heir.
5. Create a Trust for the Minor’s Share
You can transfer the minor’s inheritance into a trust governed by Indiana Code Title 30, Article 4. A trustee manages, leases, or sells real estate per the trust document. Trust administration can avoid ongoing court oversight after initial funding.
6. Consider a Custodial Arrangement for Sale Proceeds
While the Indiana Uniform Transfers to Minors Act (IC 32-18) generally covers personal property, you can structure the sale so proceeds flow into a custodial account or UTMA-equivalent for the minor’s benefit. Consult counsel to confirm compliance and investment rules.
Helpful Hints
- Begin guardianship or probate filings early. Court schedules can cause delays.
- Obtain a current appraisal to demonstrate fair market value to the court.
- Provide clear notice to all heirs, including the minor’s guardian, at each step.
- Evaluate potential federal gift tax and future capital gains tax consequences.
- Explore mediation or family settlement to avoid contested proceedings.
- Work with a probate attorney familiar with Indiana’s guardianship and partition statutes.