Disclaimer: This article provides general legal information under North Dakota law and is not legal advice.
Detailed Answer
When a minor child inherits real estate in North Dakota, the law prohibits a minor from personally executing a deed or consent for sale. To protect the minor’s interests, the court and guardian statutes outline specific pathways for selling or transferring that property. Below are the primary options under North Dakota law.
1. Sale Through a Court-Appointed Guardian
If the minor has no appointed guardian, any interested party can petition the district court for a guardianship under N.D.C.C. § 30.1-06-01. Once appointed, the guardian must seek court approval to sell the ward’s real estate. The guardian files a petition under N.D.C.C. § 30.1-27-02, demonstrating the sale serves the minor’s best interest. The court reviews appraisal evidence and potential impact on the minor’s estate, then issues an order authorizing the sale and directing distribution of proceeds.
2. Partition Action with Guardian ad Litem
When multiple heirs own property jointly—including a minor—the co-owners may file a partition action under N.D.C.C. § 32-17-01. The court appoints a guardian ad litem to represent the minor’s share. If physical division proves impractical, the court orders a sale and divides net proceeds among co-owners based on their respective interests. This method resolves ownership disputes and allows sale without direct minor consent.
3. Transfer to a Custodian Under the Uniform Transfers to Minors Act (UTMA)
Under the North Dakota Uniform Transfers to Minors Act (N.D.C.C. Ch. 10-05), a custodian may hold title to real estate on behalf of the minor. The custodian controls the property until distribution at majority age (18). If sale becomes necessary—for example, to pay expenses—the custodian can sell the property in a manner consistent with fiduciary duties. Complex sales often still require court confirmation to ensure fair market value.
4. Trust for the Minor’s Benefit
A property owner may place real estate into a testamentary or inter vivos trust naming the minor as beneficiary. A trustee—rather than the minor—holds legal title and can sell or lease under trust terms. Proper drafting ensures the trustee has clear authority to manage or dispose of real estate without further court approval, provided the trust instrument complies with North Dakota trust law.
Helpful Hints
- Consult a probate attorney to determine the most efficient path—guardianship or UTMA custodianship—based on the property’s value and family goals.
- Obtain a professional appraisal before seeking court approval to show fair market value.
- Include detailed accounting provisions in any guardian’s or trustee’s petition to simplify court review.
- Consider a partition action if multiple co-owners disagree on selling inherited property.
- Keep thorough records of all transactions and court orders to protect the minor’s interests and streamline closing.