A personal representative overseeing estate administration has several important responsibilities. They locate the will and other estate planning documents created by the decedent, initiate probate proceedings and manage estate resources.
They typically need to pay careful attention to estate resources that have significant economic value. For many estates, the most valuable asset is the home where the decedent lived. Estates can also sometimes include other forms of real property ranging from vacant land to vacation homes.
When an estate contains real property and the plan is to sell that property, the personal representative has a lot of work ahead of them. The three considerations below are among the most important to address when selling a home as part of the probate process.
Securing the property quickly
A vacant property is vulnerable to all kinds of misconduct. Vagrants or teenagers may try to access the home for criminal purposes. Family members might try to gain entry into the home to lay claim to specific personal property. It is, therefore, important for the personal representative of an estate to secure the property as soon as possible. That process may include emptying the home of high-value items like jewelry and even changing the locks. Doing so can prevent estate losses and help preserve the value of the property.
Check carefully for sale instructions
Testators who have older beneficiaries may assume that they do not want to directly inherit the home, especially if they already own their own homes. However, sometimes family members may have an emotional attachment to the property. The decedent may have acknowledged that potential attachment by extending the right of first refusal to specific beneficiaries or anyone inheriting from the estate. Checking the documents carefully can be important, as the personal representative may have to give beneficiaries a chance to make an offer on the home before they list it for sale on the open market.
Optimizing the sale price
The personal representative of the estate has a fiduciary duty to its beneficiaries. They should try to act in their best interests, which usually means seeking to optimize what they inherit. Personal representatives can adhere to that standard by ensuring that the sale of the largest assets that belong to the estate returns the maximum amount of proceeds. Therefore, personal representatives should not sell real property for less than the fair market value.
Having support throughout estate administration can help personal representatives fulfill their obligations and avoid liability. The sale of high-value assets like real estate can easily lead to challenges and complications during the probate process. Those who handle the process carefully limit the likelihood of issues arising.
