Selling an Inherited Home with Minor Co-Owners in South Dakota: Court Approval Steps | South Dakota Probate

Disclaimer

This article is educational only and is not legal advice. Laws change and every case is different. Consult a licensed South Dakota attorney for advice specific to your situation.

Detailed Answer

When a home is inherited by multiple co-owners and at least one co-owner is a minor, the sale of the property typically requires court involvement in South Dakota. The court’s role is to protect the minor’s interests and ensure the sale is fair and in the minor’s best interest. Below are the common steps you will see in South Dakota probate practice.

Confirm how ownership passed and whether probate is required.

First, determine how the decedent’s interest transferred: by will, by intestacy (no will), by joint tenancy, or through a trust. If the property interest passed through the probate process (through a will or intestacy), you or an executor/personal representative will open a probate estate in the county where the decedent lived. If title passed outside of probate (for example by full-right-of-survivorship joint tenancy or a properly funded trust), a sale may not require probate court, but any sale that affects a minor’s interest often still requires court approval or a guardian/conservator process to protect the minor.
Appoint a guardian or conservator for the minor’s property if needed.

If a minor will hold a distributive share of proceeds or an ownership interest, the court usually requires appointment of a guardian of the minor’s estate (also called a conservator in some jurisdictions) to manage the minor’s property or to handle the sale. The petition for appointment is filed in the probate or juvenile court. The court may require a background check, bond, and an inventory of the minor’s property.
Provide notice and, if required, appoint a guardian ad litem.

The court will require notice to interested parties (co-owners, heirs, creditors). For a sale involving a minor’s interest, the court often appoints a guardian ad litem or attorney to represent the minor’s best interests in the sale proceeding. The court may also require proof that the sale is not collusive and that the price is fair.
Obtain an appraisal or other independent valuation.

Courts normally expect an independent appraisal or market analysis when approving the sale of real property belonging to or affecting a minor. The appraisal helps the judge decide whether the proposed sale price is fair and whether any preferential sale (for example to a co-owner) is at market value.
File a petition to sell the property and submit proposed documents.

The guardian, personal representative, or other petitioner files a petition asking the probate court to authorize the sale. The filing generally includes: a copy of the death certificate and will (if any); letters testamentary or letters of administration (if appointed); the proposed purchase agreement; the appraisal; an accounting or inventory showing the minor’s interest; and a proposed court order approving the sale. The court will schedule a hearing after required notices.
Attend the court hearing and obtain the court order approving the sale.

At the hearing, the judge will evaluate whether the sale protects the minor’s interest. If the judge approves, the court issues an order authorizing the sale and describing how the minor’s share must be handled—often requiring the proceeds be placed in a blocked (court-controlled) bank account, invested, or otherwise held under court supervision until the minor reaches majority or until further court order.
Close the sale and follow reporting/accounting requirements.

After closing, whoever is responsible for the minor’s share (guardian/conservator or personal representative) must follow the court’s directions for depositing proceeds and filing an accounting with the court. The court may require receipts, an accounting of sale costs, attorney fees, and proof the minor’s funds are properly protected.
Consider alternatives and special situations.

If co-owners disagree, a partition action (court-ordered division or sale) may be possible, and the court will still protect a minor’s share. If the minor’s share is small or the family prefers a simpler route, some courts allow a minor’s money to be placed in a special bank account or invested under a conservatorship without selling the home immediately—again this depends on the facts and the court’s determination of the minor’s best interest.

Typical timeline and costs

Expect several weeks to several months. Steps that add time: appointment of a guardian/conservator, requirement of an appraisal, and contested petitions. Costs usually include filing fees, appraisal fees, attorney fees, guardian bonds (if required), and ordinary closing costs.

Relevant South Dakota resources

Helpful Hints

Start by locating the death certificate, will (if any), and current deed to confirm how title passed.
Talk to the probate clerk in the county where the decedent lived—clerks can explain local filing steps and required forms.
Get a professional real estate appraisal before proposing a sale, especially if a co-owner (or an heir) wants to buy the property.
Anticipate the court requiring proceeds for a minor to be held in a blocked account or invested under court supervision until the minor turns 18 (or as ordered by the court).
If the minor has a guardian of the person but not a guardian of the estate, you usually must petition separately for a guardian of the estate to handle property sales.
Keep detailed records and receipts; the court may require a formal accounting after the sale.
If parties disagree, consider mediation before litigation; courts often prefer settlements that protect minors and avoid contested hearings.
Consult a South Dakota probate attorney early if you expect a contested sale, complicated title issues, or significant assets tied to the property.

Next steps

Collect documents (death certificate, will, deed, contact info for heirs), contact the county probate clerk to learn local procedures, and consult a South Dakota probate attorney to review your facts and prepare the necessary petitions and court filings.