Dealing with probate can be a daunting and time-consuming task, especially after dealing with the loss of a loved one. In this article, we offer five things that you should be aware of when dealing with a house in probate.
What Is Probate?
Probate is the process that occurs after someone passes away in order to pay off any debts and to pass on inheritances to the heirs. While the laws vary from state to state, there are some general things you can expect no matter where the property is located. To become the legal owner of a home after someone passes away, you may be required to go through the probate process. When a Will is present an executor, or personal representative here in Maryland, will already be assigned. However, if there isn’t a will, the courts will assign a personal representative to facilitate the process.
The Will Needs To Be Proven Valid
When someone passes away, the court will need to be notified in order to open a probate case. The Will must be provided, along with any documentation that proves that the Will is valid. A few requirements of a valid Will include the intent, being of the legal age of 18 when signed, and that two witnesses were present to observe the signature and the date in which it was signed. The Will needs to be created voluntarily, by someone who is of a sound mind, in order for it to be considered legal with the court system.
You Will Need To Notify Creditors and Heirs
After your loved one passes away, you will need to notify all creditors and potential heirs that you are opening a probate case. In some instances, you may even need to put a legal notice in the local newspaper. You will need to use the estate to pay off all valid debts such as credit cards and personal loans. And don’t forget about Uncle Sam. When handling probate, you’ll need to file a tax return for the deceased and pay any inheritance taxes that are due.
You Will Need To Take an Inventory Of The Entire Estate
In addition to any real estate, the courts will need to know about other investments such as stocks, bonds, cards, deeds, bank accounts, or any other high-value items. These items will be taken into account when paying off debts to entitled creditors as well as when assets are distributed between the beneficiaries. For this part of the process, it is generally a good idea to work with a probate attorney to ensure that everything is properly discovered and accurately recorded.
The Probate Process Can Be Time Consuming
If you are responsible as the personal representative of the estate, you may find yourself dealing with paperwork, phone calls, and court hearings that can take up a good amount of your time. When a Will is present, things will typically move along faster than if one wasn’t. Having a Will in place will leave little to be decided by the courts. Some probate cases can be wrapped up in a matter of months, while others can take a couple of years to be completed. Having everything together ahead of time will make the process go much more smoothly.
You Can Sell The Property While In Probate
A quick and easy solution for a house in probate is to simply sell it. If the estate is “intestate”, meaning no Will is present, the house will need to be sold through the probate courts, which is a highly regulated process. In addition, there are court fees and specific processes that must be followed. These processes vary from state to state.
However, if an estate is “testate”, meaning there is a Will present, the personal representative will be able to petition the courts to sell the property on their own. This is ideal for those who want to avoid court costs while retaining more control of the process. For those who want to save even more money, selling your inherited property to a professional buyer who is familiar with the probate process may be the best way to go. When you work with Maryland Home Buyers, you will not have any of the expenses that routinely incur when working with a Baltimore real estate agent. For example, you won’t be faced with any realtor commissions, repair costs, or marketing expenses to sell the probate house.
In some cases, heirs can be surprised by property left to them in a Will. They may not want to keep the house or be financially prepared to do so. When the latter is the case, spending money on repairs, upgrades, and other costs to sell will likely be out of the question. By selling their inherited Baltimore house directly, they’ll be able to get a quick & easy sale, pay off the debts and divide the sale proceeds amongst the heirs as laid out by the court.
Before you think about selling your inherited property in Baltimore, make sure you have the authority to do so.