When you a sell probate property, the home is sold while an ongoing probate proceeding is occurring. This happens when the person passes without a will or when they haven’t bequeathed their property. The executor has the responsibility of selling the property.
We’ve put together a step by step guide on how to sell a probate property. This should help to take some of the confusion out of the process. Some of these steps can be skipped if the deceased doesn’t have a will.
Step #1 – Read the Will
Hopefully, someone knows where the original will is located. Otherwise, it will be assumed the there is none. If there is a will, it’s important that it gets read through carefully. If planning has been done accordingly, you won’t need to sell probate property.
Step #2 – Make a List of Beneficiaries
After reading through the will, make a list of everyone that was named as a beneficiary. Your list should include:
- Their name
- Mailing address
- Date of birth
- Phone numbers
- Email address
- Social security number
If any of the people on the list are deceased, you will need an original death certificate for the courts, so it’s best to obtain that now.
Step #3 – Make a List of Assets
Now, you’ll want to look through all the decedent’s documents. This includes:
- Bank statements
- Brokerage statements
- Bond certificates
- Stock certificates
- Corporate records
- Life insurance policies
- Boat titles
- Car titles
- Deeds
Make a list of these assets with the following information included:
- What they owned
- How it was titled
- Value of the asset
- Date of the last valuation
On top of this, you’ll want to set aside the last three years of the decedent’s income tax returns.
Step #4 – Make a List of Liabilities
Using all of the previous information, you can now make a list of anything the decedent owes. This list includes the following items:
- Lines of credit
- Mortgages
- Property taxes
- Condominium fees
- Federal and state income taxes
- Loans on cars or boats
- Personal loans and student loans
- Loans against life insurance policies
- Storage fees
- Loans against retirement accounts
- Utility bills
- Credit card bills
- Cell phone bills
Once this list is complete, you’ll have to split it into two categories. One will be the liabilities that are ongoing during probate and the other is liabilities that are paid in full once probate is open.
Step #5 – Meet with an Estate Lawyer
An estate lawyer, or probate attorney handles the majority of issues regarding probate sales. If you have completed steps one through four first, then the meeting with the estate lawyer is going to be much faster.
For the best chance of getting things worked out quickly, the beneficiaries and personal representative which are named in the will all attend this meeting. If they aren’t able to attend the meeting, arrangements need to be made for them to listen on a conference call instead.
When there was no will, then all the heirs of law should attend the meeting. If there is uncertainty about who this is, make sure you write up a copy of the family tree for the estate lawyer to exam. Anyone who believes they might be an heir should be at that meeting.
If the decedent didn’t keep good records and there are tons of documents to sift through, you’ll want to work closely with an estate lawyer to get it all sorted out properly. Together, you’ll be able to determine what they owned and what they owed.
Step #6 – Sign the Documents to Open the Probate Estate
Your next step to sell probate property is to review all the documents from the estate lawyer. Once they’ve been through all the information, they will draft court documents that are needed to open the probate estate.
The Executor, Personal Representative and beneficiaries will all need to review and sign these documents. The documents are going to vary from state to state, but they will often include the following information:
- Petition for probate administration
- Appointment of resident agent
- Oath and acceptance of Executor/Personal Representative
- Petition to Waive Bond
- Joinders, Waivers and Consents
- Order Appointing Executor/Personal Representative
- Order Admitting Will to Probate
- Letters of Administration/Letter Testamentary
- Order Waiving Bond
Step #7 – Sit and Wait Patiently for Estate Lawyer
IF all of the documents were in proper order, then the probate judge should sign the orders within a few days or weeks. This will admit the decedent’s will to probate and appoint the personal representative or executor. It will also put the Letters of Administration/Letters Testamentary into effect.
Once the lawyer receives the go-ahead from the court, they will obtain a taxpayer identification number for the decedent’s estate. They will do this online with the IRS with the help of the EIN Assistant.
It’s important to note that the probate judge might require the Personal Representative/Executor to post a bond. The estate lawyer will work with you to secure that bond prior to the opening of the probate estate.
Step #8 – Offer Certified Copies of the Probate Orders to Financial Institutions
Once the letters are signed by the probate judge, then all the certified copies are sent to the decedent’s financial institutions. This will go with the original death certificate along with taxpayer identification for the probate estate.
This gives the executor access to all of the financial accounts so the estate can be settled. To deal with the real estate aspect, you’ll need to provide letters to the utility companies so transfers can occur.
These eight steps to sell probate property might seem overwhelming. That’s because it is a lot of work to complete the process.
Sell Probate Property to Integrity Homebuyers
We understand how difficult this time must be for you. Not only are you dealing with grief and sadness from the loss of a loved one, but you are also faced with getting all the affairs in order. We want to help you navigate your way through this so you can sell probate property quickly.
A word of warning – there are a lot of companies out there that will take advantage of your vulnerable position. Please be careful with your selections.
Integrity Homebuyers is accredited with the Better Business Bureau and has an A+ rating. When you need to sell probate property quickly, you can get a fair cash offer from us. We are ready to serve.
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