PROBATE
Selling a home after the death of the homeowner may require going through probate. The Executor/Administrator/Personal Representative has steps to follow before the home can be listed and sold.
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When someone that owns real estate passes away, the main question is how do we sell the house? Typically, the owner of the house is the only one that can rightfully sell the home, so if they pass away, there is a process that determines who can sell the home. There is also a process to determine heirs and how the proceeds from the home, once sold, is disbursed.
The process of selling a home for someone that is deceased is a delicate process that takes empathy and careful guidance. During this time, the family may still be grieving; however, are still trying to take care of final matters best they can.
When a loved one passes away, it can be difficult trying to adjust and navigate through taking care of their affairs. From the passing, to the funeral arrangements, to the new reality it can all be emotional and overwhelming. It is for this reason that some families will either wait to do probate or drag themselves through it. Some families, believe it or not, don’t even know what probate is and if it is even needed. It is also for this reason, it’s best to seek a specialized agent that understands the process, can explain it to you in plain English, has patience and can help guide you with their roadmap. Of course you can google, but just like anything else, it’s a headache trying to sift through what applies to you and what doesn’t and what sources are credible and what sources aren’t. This really isn’t the time for any extra headaches.
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PROBATES- Probate is the legal process that may be required after someone dies. Probate is the process that gives someone the authority to gather the deceased’s assets, pay taxes and debts and ultimately transfer assets to the people that inherit them. The process is determined by whether the deceased had a will (testate) or died without a will (intestate).
In Virginia, if you have a Living Trust, someone that’s named to take over as trustee after your death, you can typically avoid a probate. Typical time of probate varies. For the purposes of selling real estate, the deed is also reviewed to determine if the deceased is on the title with someone else and determine how title was taken. The review of the deed and how title was taken helps to determine the list of heirs. Overall, probate could take up to 6 months.
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THE 6 PHASES OF PROBATE
Phase 1- An executor or administrator steps forward. Either one was named in the will or the interested party applies to become an executor/administrator/personal representative.
Executor is appointed- Executors can be compensated up to 5% for estimated values of $500k and may get more of a compensation with values over $800k.
Phase 2- File for probate in the probate department of the Circuit Court located in the city where the deceased resided. Provide a copy of the death certificate and will, if available.
Phase 3- Establishing the Estate- Inventory of property assets and debts. Must be completed and filed within 4 months of filing for probate.
Phase 4- Appraisal- Value of the Estate- Gross estimated value given that includes all assets and all debts are deducted from this value. The executor of the estate may be compensated, so the compensation for the executor is also deducted.
Phase 5- Estate Taxes- Estate taxes will be determined if any and must be paid from the proceeds of the estate.
Phase 6- Inheritance/Heirs- Remaining assets are distributed among heirs, that is, once the taxes and debts are paid.
Selling your home Probate Style- Once assets have gone through probate and the real estate of the deceased is now ready to be sold on the open market, either through mutual agreement of the beneficiaries/heirs or forced sale from the judge, you need a specialized agent to help with the process. Usually these homes are sold as-is, so a special type of buyer may be needed.
Call a CERTIFIED PROBATE SPECIALIST today to discuss the process that is needed for your specific situation.
Choosing the wrong agent to help with this type of sale can cost you time, extra grief and money. When having to deal with a probate sale, you also want an agent that is empathetic and can understand the process of what you have been through to get to this point and help with negotiations and structuring the deal- especially if the home is one that easily attracts the eyes of investors.
Virginia does not have a probate court. Probate is handled by the clerk in the probate department which is typically located in the Circuit Court building for each city/county. Also, typically this has to be done in person, but with the current pandemic, there are some forms that can be downloaded and printed from their website. Always call ahead and see if you can make an appointment, find out the process, and what documents are needed for your appointment.
Creditors have up to 6 months to collect debts against the estate.