{"id":1343,"date":"2021-04-09T09:00:42","date_gmt":"2021-04-09T13:00:42","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1343"},"modified":"2024-04-25T23:20:02","modified_gmt":"2024-04-26T03:20:02","slug":"selling-a-probate-property-in-6-steps-practical-tips-for-beneficiaries","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/selling-a-probate-property-in-6-steps-practical-tips-for-beneficiaries\/","title":{"rendered":"Selling a Probate Property in 6 Steps: Practical Tips for Beneficiaries"},"content":{"rendered":"\n
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Selling a probate property is a study in patience. It\u2019s important\nto let probate run its proper course. <\/p>\n\n\n\n

The goal of this court-supervised process is to pay the\nestate\u2019s debts, and to make sure the deceased person\u2019s chosen beneficiaries\nreceive the value they\u2019ve been promised through the will. The conveyance of a\nhome receives special scrutiny, as it\u2019s typically one of the largest assets a\nperson leaves behind.<\/p>\n\n\n\n

Under the court\u2019s watch, the executor or administrator must\nfirst be officially approved. This executor must take an inventory of the\nestate and correctly identify \u2014 and notify \u2014 potential creditors and beneficiaries.\nAnyone who rejects their potential claim to the estate must sign a disclaimer\nof interest.<\/em><\/p>\n\n\n\n

There\u2019s a good reason for every step in the process, and for\ntaking each step according to the probate court\u2019s rules. Following all the\nlegal requirements supports the integrity of the home title. So, if you are an\nexecutor or a beneficiary who expects to sell real property from an estate, here\nare the steps to take, and tips to help you prepare.<\/p>\n\n\n\n\n\n\n\n

Selling Through the Probate Court<\/h2>\n\n\n\n

To follow the will or satisfy debts, real estate might need\nto be sold. The beneficiary could want the house to be sold during probate, and\nnever take title. This way the estate itself conveys the house to a buyer. <\/p>\n\n\n\n

Sale proceeds satisfy the estate\u2019s debts. When creditors are\nduly satisfied, and the fees and taxes are paid, the remainder of the proceeds\ncan be distributed to the beneficiaries. Below is a sample guide to the steps.  <\/p>\n\n\n\n

Step 1. Pick Your Team.<\/h3>\n\n\n\n

Locate an experienced probate attorney and real estate agent.\nIf you are the executor or the court-appointed administrator of the estate, an\nexperienced probate attorney can advise you, prepare the legal documents, and\nrepresent you in probate court. The attorney can also handle vital parts of the\nprocess \u2014 things like filing for life insurance payouts, having the title\nsearch completed, ensuring the underwriters receive proper documentation, and submitting\nfinal tax returns.<\/p>\n\n\n\n

A great real estate agent can save the day when appraisers\nand inspectors need to be recruited, regulations are overwhelming, and you need\nsomeone to cut through the noise and let you know what has to be done to the\nhouse, and what doesn\u2019t.<\/p>\n\n\n\n

Pro tip:<\/em><\/strong> A home left to more than one person\ncan create special challenges if the parties aren\u2019t all on the same page about\nhow to handle the property. If one wishes to sell and another objects, for\nexample, the court might need to step in. Sometimes there is no possible\nresolution except a partition action<\/em>, by which the court orders a sale.<\/p>\n\n\n\n

Step 2. Petition the Probate Court to Sell the House. <\/h3>\n\n\n\n

Start off by getting a current value on the house. The tax\nassessment is usually lower than the actual value of the home. So, hire a\ncertified appraiser recommended by your local real estate professional or\nprobate attorney.<\/p>\n\n\n\n

Then, your attorney can petition the probate court to sell\nthe house, submitting the appraisal with the petition. Only with the court\u2019s\napproval may the house go on the market.  <\/p>\n\n\n\n

A high value for the property is a good thing at this point,\nassuming the value does not push the estate over the threshold for inheritance\ntaxes. The reason? Capital gains taxes, which we\u2019ll discuss in the next\nsection.<\/p>\n\n\n\n

\u261b<\/em><\/strong>\nSee more about inheritance taxes and how the IRS views the home sale<\/a>\nhere. And note that tax rules change over time. Don\u2019t forget to check in with your\ntax specialist before you sell.<\/em><\/strong><\/p>\n\n\n\n

Step 3. Obtain Your Agreement and Deposit From the Prospective Buyer.<\/h3>\n\n\n\n

Plan to collect a 10% deposit from the buyer at this time. Disclosures\nto buyers should note:<\/p>\n\n\n\n