Many things that must be put in order when your loved one passes, but the task does not have to be overwhelming. The probate process is enough to put most in a panic, as the complicated undertaking can be drawn out and often carries a hefty price-tag.
Regarding a will and estate of a deceased person, if there was no living trust named, a probate must be pursued according to state guidelines, and the legality can be quite messy and expensive. If you are in the midst of a probate and are wondering if you can sell a house in probate to cover the cost, the answer is yes.
What does probate cost?
First of all, it is important to keep in mind that nothing in the legal system is free. If the court is working with a valid will, there are expected court costs and fees that must be paid. On the other hand, if there is no will, or if the validity of a will is challenged, unfortunately, the process could be drawn out, and the cost of this administration of the estate could run quite high.
According to the American Bar Association, probate and administrative fees can consume between 6% and 10% of a person’s estate. It is also important to remember that this percentage is calculated before any deductions or liens are taken out. After creditors collect their payments for debt, funeral expenses are paid, taxes are collected, and all remaining claims are settled, then what is left is then distributed to the heirs of the estate or the beneficiaries named in the will. If there was no will present at the time of death, and then the laws of your state will determine how the property is distributed.
How can I pay for the probate fees?
As could be expected, all of this could generate quite a bill. However, as an executor of an estate, to help cover this cost, you can sell real estate that was held by the deceased but was not directly willed to a particular beneficiary. After the sale of the property, and the application of the proceeds to the probate cost and estate debts, the probate court will split any remaining proceeds among the beneficiaries. How this is determined, of course, is relevant to the state laws where the property is located. To specify, regarding real estate, the probate must be done in the county in which the property is located. If the deceased possessed property in another jurisdiction, this will prompt an ancillary administration (separate probate of the property in the jurisdiction where it’s located), in addition to probate in the decedent’s state of residence.
The executor may accept an offer from a buyer, and sell the property while the probate is still in process. While the process is doable, it is tedious, and must be done by strict state rules. The probate court requires their monitoring and approval of the terms of the sale, but luckily, we’re is familiar with the workings of the probate court and is ready to take on the process.
How St. Louis Realty Advisors can help make probate simpler:
A specific process is required to sell a house that is in probate; proper court filing is required, as well as court approval for the sale. While this process can take 45-60 days, or longer, some sellers are learning that a sale with a traditional realtor can draw out this process to an excruciatingly long time. During this period, which could take months at this point, the executor of the property is still required to pay taxes, electric bills, and insurance on the home, not to mention the realtor fees for the commission. However, there is good news. When you sell a probated house to St. Louis Realty Advisors, the undertaking is shortened to a much more tolerable wait time. You can still receive the highest-possible cash amount for the property while avoiding multiple messy legal hurdles.
The probate process is certainly not simple, and can cause strain on an already stressful period of your life. With St. Louis Realty Advisors, you have the power to make probate a lot easier, and that is enough to bring a much-needed sigh of relief to a difficult time. To get started give us a call at 314-326-4900.