Losing a loved one can be extremely difficult. In the aftermath of this traumatic experience, you may be faced with some tough decisions. Studies show that over 30% of Americans will receive an inheritance for a dead loved one in their lifetime. When a person dies, their assets are generally reviewed by a probate court. This court is in charge of providing a final ruling regarding the division of property to a deceased person’s beneficiaries.
If you are attempting to sell a home in probate, you need to realize this is not an easy process. The following are some things you need to consider when trying to sell a home in probate.
Petition The Court To Sell The Home
The first step in selling a home in probate is petitioning the court reviewing the assets of your deceased relative. Before you do this, you need to hire a certified appraiser to assess the actual value of the home. Once you have this information, the lawyer you hire to help you with this process can petition the court. They will usually submit the appraisal along with their petition to provide the court with more context about the property in question.
The court will assess whether or not the overall value of the property is below the threshold for inheritance taxes. You need to realize that if your home sells for more than the appraisal submitted to the probate court, you will need to pay capital gains tax on the overage. Working with an experienced accountant is the best way to figure out what this amount should be and how to submit the payment to the IRS.
Get a Buyer Agreement
The next step in this process is obtaining an agreement from your potential buyer. This agreement will state the individual or company’s intent to buy the property in question. The disclosure provided to the potential buyer should include information regarding how the purchase is contingent on the approval of the probate court. You also need to spell out any problems that may impact the value of the home. An experienced lawyer should be able to guide you in completing the disclosure forms properly.
Provide The Bid To The Probate Court
A public court date is usually set when the sale of a home requires probate court approval. Once you submit the bid from the buyer to the court, they will schedule this court date. During these proceedings, other people can bid on the property if they are so inclined.
You need to realize that only a court-approved executor or administrator can sign the documents needed to complete the sale of a home in probate. This individual will sign the property deed on behalf of the deceased individual. Once this is done, you can complete the sale and get the money from your buyer.
As you can see, selling a home in probate can be a difficult process. With a motivated buyer and the help of legal professionals, you can get through this process with ease.