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Probate

What is probate?

When a person dies somebody has to deal with their estate (money property and possessions left) by collecting in all the money, paying any debts and distributing what is left to those people entitled to it. Probate is the court’s authority; given to a person or persons to administer a deceased person’s estate and the document issued by the Probate Service is called a Grant of Representation. This document is usually required by the asset holders as proof to show the correct person or persons have the Probate Service’s authority to administer a deceased person’s estate. The Probate Service forms part of the Family Division of the High Court. It deals with ‘non-contentious’ probate business (where there is no dispute about the validity of a will or entitlement to take a grant), and issues grants of representation either: Probate (when the deceased person left a valid will and an executor is acting) Letters of administration with will (when a person has left a valid will but no executor is acting) or Letters of administration (usually when there is no valid will). These grants appoint people known as personal representatives to administer the deceased person’s estate.

Probate property sale

Some of the decedent's property may never enter a probate property sale because it passes to another person contractually such as the death proceeds of an insurance policy insuring the decedent or bank account that names a beneficiary or is owned as "payable on death", and property (usually, again, a bank account) legally held as "jointly owned with right of survivorship".

Property held in a living trust also avoids a probate property sale. In these cases, the personal representative provides documentation to the court, and the property is prevented from entering probate. The first task of the personal representative after opening the probate case with the court is to inventory and collect the decedent's property.

Next, the personal representative pays any debts and taxes that must be paid. Finally, the personal representative distributes the remaining property to the decedent's beneficiaries, either as instructed in the will, or per the intestacy laws of the state. Throughout this process there may be disputes. Anyone may make a claim on the estate before the probate property sale, either by petitioning the personal representative or the court. If the claim is rejected, the claimant may file a lawsuit to attempt to prove the claim and collect money. Any dispute generally causes the court to treat the probate more formally, and it may reach the point where the court must approve every transfer of every piece of property. The personal representative must understand and abide by the fiduciary duties (e.g., duty to keep monies in interest bearing account, duty to treat all beneficiaries equally, etc.) placed on him or her. Disregard of the fiduciary duties may allow interested persons to petition for the removal of the personal representative and hold the personal representative liable for any harm to the estate.

What is involved in a probate property sale?

A large number of Decision Homebuyers sales involve property derived from probate i.e. the proceeds from a deceased person’s will.

Years ago, the majority of homes were rented, or passed down from generation to generation if they were owned. In those days, it was accepted that the oldest child (or a son) should inherit the estate.

However, times change and inheritance is no longer a decision based on superiority. Today, people are treated as equals meaning probate is much more complicated.

Property ownership has also changed. People live a lot longer now; meaning when a parent dies their children may well be heading towards middle age themselves, with homes of their own. For whatever reason, today it is the exception, rather than the rule, for property to automatically go to the next of kin in its entirety.

Today’s rules of probate

A modern estate’s value generally lies in its bricks and mortar, so when a will is made the value of the estate includes a valuation of the property.

Following a death, the estate is disposed of by sale or auction. Any debts, death duties etc are paid from the proceeds, after which the remainder is distributed as within the terms of the will. Thus, the executor will need to arrange a probate property sale.

This is a very simple explanation of the complex laws of probate. Much will depend on whether the person died intestate, and if the will is being contested (it does sometimes still happen that a property is left to a family member). However, the majority of probate property sales, including many of those handled by us at Decision Homebuyers, are fairly straight forward.


Why probate needs to be handled quickly


When an inheritance includes property, it’s essential it is disposed of quickly. There will be numerous funeral expenses, debts and such like to pay, as well as the inheritance to sort out.

However, the executor handling the probate property sale is often a family member. The last thing they may feel like doing is handling a property sale – especially if it’s a place they grew up in. They certainly won’t want to show strangers round the property so soon after the funeral.

There is also the problem of leaving the property vacant. Unoccupied properties soon attract vandals, and become unkempt. If it is left vacant for too long, its value will plummet – to the point where an estate agent won’t touch it.


Probate property sales with Decision Homebuyers


When it comes to a probate sale we can really help. We know how distressing it is to lose a loved one, and will do everything we can to make it as stress free as possible.

Following a survey and valuation, we will make an offer on the property. If it’s accepted, the executor can relax while we deal with everything.

The result is a fast cash settlement, often in as little as 7 days, making us the ideal choice when it comes to settling a loved one’s estate.

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