For anyone who has dealt with inherited properties, it can be a zoo to deal with. Whether there are multiple beneficiaries, repairs that have been awaiting to be completed, or overall disagreements upon parties, all can be major issues with working to sell an inherited property. When there are multiple beneficiaries, almost always there is a disagreement upon how the property will be sold. In some cases, maybe the beneficiaries are split upon whether the property should be sold or not. In other cases, maybe there is an agreement to sell the property, but a disagreement on how much the home should be sold for. Overall, any of these issues can stall the delay of the selling, and the listing of the home on the market in general.
Aside from the family disagreements that can spur, the probate process can take quite a long time. Probate is the process in which a legal court validates a deceased owner’s will, or Arizona state law if there is no will. In Arizona, the probate process can take anywhere from at least 6-8 months on average. Brown & Hobkirk, a law firm out of Arizona states, “probate proceedings must be kept open for at least four months to allow any creditors to make claims per Arizona state law”. This process can be time consuming and frustrating, but completely necessary in this process in the majority of situations. Most notably, when all assets of a deceased persons’ property are strictly in the person’s name, or if the value of the estate exceeds state-specified limits to transfer property.
Often, when going through a probate period, there is a personal representative appointed by law. The personal representative, aka the executor, holds a weighted role; the probate cannot move further without the personal representative working through each of the steps of the case. In total, there are nine steps.
1. Case Initiation
– Filing the will (if there is one) with the courts which, when reviewed, completes the petition to open the probate period, then allows the personal representative to be appointed by a judge, giving legal authority to act on.
2. Management of the Deceased’s Property
– The appointed personal representative will protect and manage the estate’s assets until the probate is complete. Including but not limited to; securing the home, maintaining home insurance, paying utilities & protecting valuables.
3. Creating an Inventory of All Assets
– Personal representatives must identify, appraise and list everything of the deceased’s inventory. Real estate, bank accounts, vehicles, investments, and personal belongings will be filed with the court for inventory.
4. Notification to Adjacent or Interested Parties
– All heirs, beneficiaries, or those interested or involved will receive official notices by Arizona state law that let everyone with legal interest know the process has begun.
5. Notifying Creditors & Handling Debts
– Personal representatives must state a deadline for creditors to file claims against the estate, which then the estate will repay the debts if valid from estate funds. Within that deadline, creditor notices will be published or sent by mail; the claims sent will be reviewed, then approved or denied. This step is crucial, as assets cannot be distributed until creditors have been handled.
6. Handling of Estate Taxes
– The personal representative must identify, file, and pay all remaining taxes from the estate’s assets before remaining property can be dispersed. In Arizona, the only tax that is applied is federal estate tax with larger estates. Arizona does not impose its own state-level inheritance tax. Although there is no taxation on the estate by Arizona state, larger estates may be subject to the federal estate tax. Most likely, the personal representative must also file a final tax return on behalf of the deceased. Even if the deceased completed their employment tenure prior to death, there most likely will be a final income tax to be filed.
7. Management of Property Sale (If Necessary)
– In the case of a will, there may be a chance that the property may be directed into being sold. In absence of a will, if money is needed to pay the remaining debts of the estate, the personal representative may need to put the estate up for sale. The personal representative will handle hiring the realtor, approving the terms of the sale, and signing the documents needed to close the sale.
8. Distribution of Assets to Heirs & Beneficiaries
– Once all expenses and debts are taken care of, the personal representative will follow state law proceedings to distribute the remainder of the money, property, and personal items included. Assets such as joint accounts, trusts, and life insurance pass automatically to the named beneficiary or co-owner. Arizona law states that spouses and children are prioritized, then parents and siblings.
9. Providing a Final Account to the Court
– Finally, the personal representative must prepare a final report including: all assets received, all expenses or debts paid, and all distributions made in the process. Only once the court has received, read, and approved the final account, probate can close.
The process of probating and acquiring a personal representative can be troubling & time consuming. If the beneficiaries decide to sell the home, there are a handful of options available. For starters, the property can be listed on the market once the title is transferred. As stated previously, the estate can be sold under the works of the personal representative if funds are needed expeditiously or to settle estate debts. The goal is to settle the probate first. Renting or leasing the estate is another option; the estate remains under the beneficiary title, while leasing the property to a tenant. The fastest and most simple option is to sell to a cash buyer.
A cash buyer can truly be ideal for an inherited property. No repairs or maintenance to the estate, no need to empty the home, and the sale can be closed when the probate is ready, or sooner if sold by the heir(s). The closing is more likely to happen leaps and bounds earlier in comparison to selling the inherited property on the market.
As heirs to an inherited property figure out what to do with the newly acquired estate, cash for homes organizations like us, Quick Cash Homes, can help make a difference. By working with one of our home assessors, we bring a sensitive, welcoming, understanding approach. We listen to our clients and truly care about finding them the right outcome for their situation. Not only are we guaranteed to offer a flexible, painless closing of the property, but we help the seller(s) through the whole process.
Do you have an inherited estate you’re looking to sell? Contact Quick Cash Homes for all your questions, comments, and information.