The Tapal Kuda region of East Java recognizes Karang Anak as a local wisdom practice in family asset management, whereby property titles are registered under the eldest child's name to enable wise inheritance distribution. However, this tradition poses risks of fraud and embezzlement when the eldest child breaches fiduciary duty. This study examines the legal aspects of Karang Anak through nominee agreement perspectives and identifies inheritance dispute resolution mechanisms. Employing a socio-legal empirical approach, data were collected through observation and in-depth interviews in Probolinggo City, supplemented by legal literature review. Qualitative descriptive analysis was conducted. Findings reveal that Karang Anak practice equates to nominee agreements constituting unlawful conduct, subject to invalidation upon breach of trust. Dispute resolution encompasses litigation through District Court and State Administrative Court proceedings for title certificate revocation, or non-litigation methods via mediation involving all heirs. The research recommends specific legislation governing such customary practices to ensure legal certainty.