Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
Under New Jersey law, minors (persons under 18) lack the capacity to enter into binding contracts, including the sale or transfer of real estate. Courts require a neutral representative and court approval to protect the minor’s interests. Key options include:
1. Court-Approved Guardianship or Committee Sale
To sell a minor’s property, you must petition the Surrogate’s Court (or Superior Court, Chancery Division, Probate Part) for appointment of a “committee” or guardian with authority over the minor’s estate. A committee acts like a trustee and can petition the court under N.J.S.A. 3B:12-17 and 3B:17-56 et seq. for permission to sell. The committee must demonstrate that the sale price, terms, and use of proceeds serve the minor’s best interests. After court confirmation, the sale proceeds are usually placed in a blocked account or trust for the minor.
2. Partition Action with Guardian ad Litem
When co-owners dispute division or sale, you may file a partition action under N.J. Ct. R. 4:82. The court will appoint a guardian ad litem to represent the minor. The court can order a sale by public auction or private sale. Proceeds are held for the minor in a blocked account until they reach majority.
3. Fiduciary Powers in Wills or Trusts
If the minor heir receives property via a will or trust, the fiduciary named in the instrument (executor or trustee) may have express power to sell the property. However, even with such authority, fiduciaries often seek a court order under N.J.S.A. 3B:14-1 et seq. to confirm the sale, ensuring protection for the minor.
Helpful Hints
- Consult a probate or real estate attorney familiar with minor guardianship proceedings in New Jersey.
- Gather all title documents, wills, trust instruments, and guardianship papers before petitioning the court.
- Prepare an independent appraisal and sales proposals to demonstrate fair market value to the court.
- Understand timelines: court approvals can take several weeks to months.
- Recognize that sale proceeds for minors typically go into a blocked or trust account until they turn 18.
- Consider whether a joint sale with all heirs best serves the minor’s interests to minimize costs and delays.