Inheriting a real estate property can be both an honor and a dilemma: A blessing that comes with the extra responsibility of having to sell the inherited home — often within a short time frame — and under specific conditions.
What happens if you inherit a house?
In probate, someone who inherits their parents’ home must sell it through an estate representative.
If the probate court decides there’s a conflict of interest between heirs, they may appoint a person to sell the home. If no conflict exists, you can choose your own agent or ask that the probate judge appoint one for you. Selling the house might take anywhere from 30-60 days. You don’t always have to sell probate property, even if it is your primary residence. You may be able to keep it and live there. Many homes are probated every year in California, with no problems for heirs who simply want to live their lives without the extra hassle associated with probate.
How long can you receive probate assets?
Once probate is complete, your rights to possess probated property end. If you do not carry out the responsibilities that an executor or administrator has under probate law, you can be held liable by creditors of the estate, as well as by beneficiaries named in the will.
How long does the probate process take?
The probate process can take anywhere from six months to a year, depending on the value of the probated estate. Fair market value is defined as the highest price you could have sold probate property for in a transaction between a willing buyer and willing seller, both informed of the true condition of probate property. Deceased parents’ homes must be probated if the value of probate assets is more than $150,000. The personal representative is held to probate court rules and deadlines, so it is important they act in a timely manner.
What if probate is taking too long?
If probate drags on for more than six months, you can file a probate motion with the court asking for permission to sell the probated assets. A probate judge might approve this request if he or she believes that probating is taking too much time and money without achieving its purpose of managing the deceased person’s affairs after death. Inherited property probates are easy to take care of, one way or another. You can probate property without hiring an attorney or probate property yourself.
Will probate affect my inheritance?
Probation shouldn’t have any material impact on your inheritance, since most people who are probated don’t own all their assets through sole ownership. They often hold property jointly with their living partners or family members through joint tenancy or survivorship rights. Probating doesn’t change these co-ownership rights or ownership arrangements. What probate can do, however, is change how people who inherit jointly under these agreements will receive their inheritance.
When to start estate planning?
If you die with an estate in probate, probate courts determine how your assets are distributed. If there is no probate estate or trust involved, there will be no probate court, to begin with.
There is a difference between probating an estate and administering a trust. Probating an estate means that the deceased person’s debts need to be paid before their assets and personal belongings can pass on to beneficiaries according to his/her will. If someone died without leaving specific instructions for how their assets should be distributed, then the probate court oversees the distribution of assets based on state laws. On the other hand, administering a trust involves determining whether or not it still makes sense to carry through with the terms of the trustor if it needs some changes and, if so, how to go about it.
Estate sale planning
Estate sales should start when you put together your will, make a living trust or give instructions to other probate trustees for dealing with your probate assets. Real estate attorney Sue Wachter recommends probate trustees contact a real estate agent before probate begins. The trustee will need to know if the deceased person had any interest in real estate and, in the case of probating large estates, he/she may need to sell some assets quickly.
Do I need an agent to sell my home?
No, you don’t. An agent is required when there is a real estate transaction in place. When probating an estate, the executor of the will needs to get together with family members and/or friends who are interested in buying the deceased person’s home (heirs). Real estate agents will help the family find the best home buyers possible. Home sale transactions over $500k will need a real estate agent to represent the seller, while transactions under $500k can be done without an agent. A real estate lawyer will be necessary to get through probate court proceedings.
Real estate agents charge you a commission for their services and take so much time to process which is a hassle even for patient sellers of inherited properties, selling it yourself would be a much better idea more so if you are on a tight schedule.
Do You Want to Sell Inherited home?
As soon as probate is completed, we’ll provide you with the cash offer that covers probate costs (about 4%), closing costs, and all your time and hassle. You can close on your new deal quickly — usually within 30-60 days. We’re 100% confidential and carry no real estate agent commission fees.
Selling a probated home can be a difficult process under normal circumstances, but selling an inherited house after someone dies requires extra work and responsibility to serve all heirs’ best interests. As an heir or probate court representative, you want to get the probated property sold as quickly as possible so that it doesn’t continue to tie up funds unnecessarily. In some cases, probating can tie up savings and investments for more than six months — which is where ASAP Cash Offer comes in handy. Give us a call today at (805)427-8312 .