While the estate planning process is used by many residents in Michigan to prepare for what will happen to assets upon death, it is often difficult to prepare for what could occur if the probate process is initiated. When heirs and beneficiaries hear that the estate administration has begun for a deceased loved one, those individuals may expect to receive what the will details. However, if a will doesn’t touch on all assets and properties, the probate process must occur.
When the probate process begins, an executor or personal representative may seek to sell various possessions in order to pay off debts and divide the remaining proceeds to the heirs. But, what about real estate owned by the decedent? Selling real estate during the probate process is actually considered a lucrative method for a buyer to make a great investment and the seller to rid heirs of property that is no longer wanted.
If an executor partakes in the process of selling real estate in the probate process, the executor must understand the limitation placed on the process and the rules of the process. The probate process often causes impatient heirs because they want their fair share. If the intended heirs cannot agree on a method to share real property or buy-out the other heirs, it is often best to sell the property and divide the proceeds among the heirs.
It might not seem like the most appealing or most obvious step to take during the probate process, but selling real estate can be helpful and beneficial for everyone involved. Those dealing with probate issues should understand that they have rights and are afforded options. Getting the right information could help ensure that your rights are protected in the process.
Source: Reiclub.com, “Buying Real Estate In Probate,” Dennis Henson, March 29, 2017