When a minor owns or inherits significant property, a guardian of the property (a guardian ad rem) may be appointed to administer it for the minor's benefit, in addition to or apart from custody of the person. Ordinarily, the parents are the legal guardians of their minor child's property; but where the property exceeds a certain value, a formal guardianship with a bond may be required, and where there are no parents or they are disqualified, the court appoints a guardian. A property guardian must administer the property prudently, cannot use it for their own benefit, and must render an accounting to the court. Critically, the guardian generally cannot sell, mortgage, or encumber the minor's real property without prior court approval obtained through a petition showing that the sale is necessary or beneficial to the minor. A sale of a minor's property without the required court authority can be void. The overriding standard is the best interest of the minor, and the court supervises to prevent dissipation of the child's estate.
When It Is Needed
When a minor owns or inherits significant property, a guardian of the property may be appointed. Parents are ordinarily the legal guardians, but a formal guardianship with a bond may be required where the property exceeds a value, or where parents are absent or disqualified.
Court Approval to Sell
A property guardian generally cannot sell, mortgage, or encumber the minor's real property without prior court approval, obtained by showing the sale is necessary or beneficial to the minor. A sale without court authority can be void.
Duties and Supervision
The guardian must administer prudently, cannot use the property for their own benefit, and must account to the court. The standard is the best interest of the minor.
Practical Takeaways
- A minor's significant property may need a guardian of the property with a bond;
- Selling the minor's real property needs court approval — or the sale can be void;
- The guardian must account and act only for the minor's benefit.
Frequently Asked Questions
Who manages a minor's property? Ordinarily the parents as legal guardians. But where the property exceeds a certain value or the parents are absent or disqualified, a formal guardian of the property is appointed by the court, usually with a bond.
Can a guardian sell a minor's land? Generally not without prior court approval. The guardian must petition and show that the sale is necessary or beneficial to the minor. A sale without court authority can be void.
What are the guardian's duties? To administer the property prudently for the minor's benefit, not use it for their own benefit, and render an accounting to the court, all guided by the best interest of the minor.
Why is court supervision required? To prevent the dissipation of the child's estate and ensure the property is preserved and used only for the minor's benefit.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
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