How to Transfer a Minor’s Inherited Real Property in North Carolina

Detailed Answer

When a minor inherits real property and the decedent’s will does not name a trust or custodian, North Carolina law gives you two primary routes: (1) appoint a guardian of the minor’s estate under Chapter 35A of the North Carolina General Statutes or (2) establish a custodianship under the Uniform Transfers to Minors Act (UTMA), Chapter 32C of the North Carolina General Statutes.

1. Guardianship of the Estate (N.C. Gen. Stat. §§ 35A-1191 et seq.)

If the real property’s value exceeds what you can transfer informally, you must petition the clerk of superior court in the county where the minor lives to become guardian of the minor’s estate. You do this under N.C. Gen. Stat. § 35A-1191. The process looks like this:

• File a petition. Complete a petition form and submit it to the clerk of superior court.
• Serve notice. Notify interested parties—sometimes including the minor’s parents—of the hearing date.
• Bond requirement. The court often requires a bond to protect the minor’s interest.
• Court hearing. Attend a hearing and demonstrate your ability to manage the property.
• Letters of guardianship. Once the court approves, it issues “letters” that allow you to act on behalf of the minor’s estate.

As guardian, you hold title, collect income (if any), and maintain the property. You must file periodic accountings with the court. When the minor reaches age 18, you transfer the title directly to them unless the court orders otherwise.

2. Custodianship under UTMA (N.C. Gen. Stat. Chapter 32C)

The Uniform Transfers to Minors Act lets a custodian hold real property on behalf of a minor without full guardianship. To use UTMA, follow these steps:

• Create a transfer document. Prepare a deed or will supplement naming the custodian and referencing Chapter 32C.
• File a petition (if necessary). If the will fails to name a custodian, you can petition under N.C. Gen. Stat. § 32C-2-201 to appoint one.
• Record the deed. Record the deed or court order in the county where the property sits.
• Custodian duties. The custodian manages the land, pays taxes, and makes improvements. Income or sale proceeds go into an account for the minor.
• Final distribution. At age 18 (or later if the transfer document says so), the custodian must transfer title or proceeds to the former minor.

By choosing between guardianship and UTMA custodianship, you ensure clear legal authority to hold and transfer title. Always follow court rules and reporting requirements. Consulting an attorney can streamline filings and avoid delays.

Key Steps at a Glance

• Determine property value and decide between guardianship or UTMA.
• Prepare and file the proper petition or transfer document.
• Serve notice to interested parties and secure any required bond.
• Attend the court hearing and obtain letters of guardianship or a UTMA order.
• Record the court order or deed with the register of deeds.
• Manage the property, file accountings, and protect the minor’s interests.
• Transfer title or proceeds to the minor when they reach the age of distribution.

Conclusion and Call to Action

Handling a minor’s real property requires clear authority from the court or a custodianship under UTMA. Pierce Law Group’s attorneys guide you through every step, from petition drafting to final distribution. Reach out today to protect your young beneficiary’s inheritance. Email us at intake@piercelaw.com or call us at (919) 341-7055.