How to Handle an Estate When Someone Passes Away
Settling someone’s estate after they pass away can be a long and often complex process, especially when you’ve never had to deal with the circumstances before. Thankfully, there are resources available to you from the real estate professionals here at Coldwell Banker Premier. If you’re reading this, it’s likely that one of your family members has passed away and you’re tasked with managing their property. If that’s the case, there are several important things to know about an estate sale after the death of the owner.
What is an Estate Sale?
Unless you work in real estate, the term “estate sale” likely brings to mind a type of auction where furniture and other items from an estate are liquidated. In the real estate world, however, an estate sale typically means the sale of a property for one of the heirs of the decedent — usually the son or daughter of a deceased parent. Selling the home of a loved one who has passed away is not unlike selling any other home, but there are some special considerations to take into account. Knowing these extra details will help make the estate sale process much easier.
Real Estate Transfer After Death
In the event that a person passes away without a will, their real estate will typically pass directly to their legal heirs — otherwise, it goes to their designated beneficiaries if they did have a will in place.
When you’ve inherited a property, the first step is to ensure that the executor of the estate has been provided the authority to liquidate the property. Ideally, there are specific instructions in the decedent’s will regarding the selling of the home. If the executor has not been given this authority, the beneficiaries retain the authority over the property and can sell the estate without the executor’s consent.
The way that homes are sold varies from state to state, and in cases where there is or isn’t a will. Following the correct procedure for your state is the first step in selling a home after a relative passes away, and may necessitate speaking with a qualified real estate attorney.
Paying Bills on the Home
When you’ve come into possession of an inherited property, it’s important to stay on top of the bills related to the home, including the mortgage, utilities, and maintenance — at least until you’re able to finalize the sale of the home. Mortgage and utility service providers still expect to be paid, even if the owner has passed away. It’s important to note that these expenses should be paid through the executor of the estate — not personally through you.
Collect Necessary Documentation
While it can be tiresome, it is necessary to collect all of the required financial documents related to the property in question. These documents are essential for the distribution of the whole estate, including the home.
This can be a time-consuming process, because unless your relative was particularly well-organized, these documents may not all be in the same place. Due to the sensitive nature of many of these documents, it’s not uncommon for them to actually be quite well hidden. Documents are often stored in crawl spaces, the attic, the corner of the garage, file cabinets, and even tucked under beds and drawers.
The documents that you’ll need to acquire include:
- Last Will & Testament
- Receipts from bills (note – it’s important to contact all creditors to freeze your loved one’s credit)
- Investment documents (including stocks and bonds)
- Insurance documents (either through their employer or personal insurance)
- Homeowner’s insurance policy
- Bank account documentation
- Personal documents, including journals, poetry, and other sentimental items
Once you know you have all of the required documentation you need, it is generally safe to dispose of anything else that contains personal information. Identity thieves commonly try to use the social security numbers of the deceased, so shredding all unnecessary documents helps make this more difficult.
Comb Through Everything in the House
When the time comes to sell the house, you’ll ideally have cleared out everything that isn’t going to be liquidated or disposed of. You can leave enough furniture to help have the home professionally staged for sale, as this can help draw in potential buyers.
There can be an emotional toll to clearing out the entire house of someone that you loved, especially when there are a lot of items with sentimental value. When this is the case, it’s often helpful to have a process that helps things move along smoothly. It can be beneficial to approach the items in the home with specific categories in mind. This can include items to keep, items to dispose of, items to donate, and items that can be sold. If there are special items in the home that may lead to disputes over who is entitled to them, set them aside to deal with at a later date. The important thing at this stage is to get the home ready to go on the market for sale.
If the owner of the home was fortunate enough to have a large collection of valuables, it may be beneficial to have an estate sale in the sense that most people think of the term. Selling these valuables can help maximize the value of inherited possessions.
Hire a Real Estate Agent
When it’s time to transition to putting the home on the market, then it’s time to call Coldwell Banker Premier. We’ll help you make sure the property is ready for market and develop a sound strategy for the sale of the home. If it’s time to sell your loved one’s home, contact our professional real estate team today.
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