When you say probate property, it is about a set of assets that a deceased person has left – and these assets must be passed through a probate court. These assets can be distributed using a will left by a deceased person or without any will left. Usually, Probate property sale procedure occurs when the deceased person needs to pay creditors, although some situations necessitate sales like eminent domain.
Selling properties, pieces of jewelry, cars, stocks, etc. must be done through the steps of court regulations. It should be managed and monitored accordingly. So, you have to choose a real estate agent that has any experience with this kind of matter.
Probate Property Sale Procedure
Probate properties are sold when the decedent doesn’t have any cash left and needs to pay his or her debts. For instance, the decedent left his home and it is worth $100,000, $3,000 cash, and debt in the credit card that’s worth $20,000 – and there are no assets aside from his home.
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So, his home should be sold and the cash from the sale of his home will be used to pay off his remaining debts when he was still alive. If there is any money left from the sale of his property, it will be distributed to his heirs. However, if the decedent dies intestate or without a will and doesn’t have any heirs, the court will usually order that the property be sold and his closest relatives will receive the money from the sale.
- Probate property sale procedure first, filing a “Petition for Probate” in the Probate court is needed. The court will appoint a personal representative that will manage the deceases person’s estate or assets. This personal representative could be an administrator, executor, etc.
- If there’s a will left by the decedent, there would be an executor included there and will act as his personal representative. However, if there is no will that’s left, the court will appoint it – and it will be called an administrator, which can be a friend, family member, or creditor.
- As a representative, you have to do a lot of things including cataloging the entire property (real & personal), pay taxes and debs, collect all the rights to different sources of income, settle property and financial disputes, file the final ITR of the decedent, file the ETR if needed, prepare an accounting (expenses & estate assets), litigate creditor’s claims, distribute or transfer all remaining properties to the heirs.
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Insurance of Probate Property
Probate property sale procedure, It does not matter if the executor, heirs, or the court is selling the property of the deceased, as long as they ensure that the property is insured all throughout the entire process – simply because, the insurance policy will expire once the homeowner is announced dead.
So, the current owner of the house or property must purchase a new policy, either the heirs or the estate of the decedent who inherited the house plans to sell it. This is important to ensure that it will be protected in case a fire or other damage occurred.