Typically,
a person’s home is the most valuable single asset – or
at least the most valuable real property – that they
leave behind when they die. Often, people designate in
their estate plan that their home is to be sold and
the proceeds returned to their estate to be included
in the assets distributed to heirs and beneficiaries.
They may designate that the home goes to a specific
beneficiary.
Whatever the case, if
you’re the one responsible for selling the home,
you’re likely anxious to get moving on it. When can
you do that?
If the home has to go
through probate
So how soon can you
start that process? It depends. If the home needs to
go through probate, that can easily take months or
longer.
That doesn’t mean you
have to wait until the probate process is complete to
move forward with selling it. However, you will need
to have probate oversight of the process.
When can a home avoid
probate?
There are a couple of
ways a home (and other assets) can avoid probate. If
the home was included in a living trust, it and other
assets in the trust can bypass probate. It can go to
the beneficiary to handle as they choose or be sold
and the assets returned to the estate almost
immediately.
Another way one’s home
can go directly to a beneficiary and bypass probate is
if there is a “transfer on death” deed naming
the designated beneficiary. Then the home transfers
directly to them.
Just remember that
there may be some items in the home that are
designated to go to other beneficiaries. Therefore, if
you’re in charge of administering the estate, you’ll
need to secure the home until that is done.
Caring for the home
until it’s sold
Regardless of how long
you have to wait to place the home on the market,
remember that if you’re administering the estate, it’s
your responsibility to secure the home and continue
covering mortgage payments, insurance, property taxes
and other expenses.
Every situation is
different. It’s smart to bring in a
real estate agent with experience in selling
homes after the owner has died – particularly if it’s
in probate. If your loved one didn’t have an estate
planning professional, it may be wise to retain your
own to advise you on this and other matters.
