03 Jun
The person named as personal representative in an estate plan or appointed by the probate courts to oversee an estate has numerous responsibilities. Their exact obligations depend on the assets left behind by the decedent and the instructions provided in estate planning paperwork.
If the person who recently passed was a homeowner, the house where they lived may have been their most valuable asset. It requires special attention throughout the estate administration process. Personal representatives have a fiduciary duty to beneficiaries, which means that they must attempt to properly manage valuable resources.
What steps are frequently necessary when an estate includes real property?
Securing the home
The first step the personal representative likely needs to take is to physically secure the property. They need to visit the home and make sure that it is inaccessible to people with criminal intentions, including vagrants and those who might steal assets. In some cases, they may choose to remove specific valuables from the property to ensure they are not vulnerable throughout estate administration. They may also need to consider changing the locks if there is a possibility that people could access the property without authorization and tamper with the assets stored there. They may even need to acquire modified homeowners insurance for the property while it sits vacant.
Reviewing deed and mortgage information
In some cases, the estate may need to assume responsibility for making mortgage payments. Otherwise, the property could be at risk of foreclosure within a few months. The personal representative may need to look over financial records and incoming correspondence to identify the mortgage company and provide information about the probate process and the death of the owner. They may also need to make contact with utility companies. In some cases, they may even need to look at a deed or check title records to verify if there’s anyone else who has an ownership interest in the property other than the decedent.
Ensuring an appropriate transfer of ownership
In some cases, wills or intestate succession laws dictate that a specific person should inherit the property. Other times, the best option may be to sell the property. The testator may have included the right of first refusal in the documents, meaning that beneficiaries may have the right to make an offer before the personal representative lists the home for sale on the open market. They may need help from an appraiser or a real estate agent to validate what the property is worth.
They may also require the guidance of an attorney to ensure that they fulfill all of their legal obligations. Real estate holdings can easily complicate estate administration. Having the right support can make all the difference for personal representatives dealing with complex estate assets.