When a loved one passes away, a common concern among family members is what will happen to the deceased’s home or other real estate holdings. During probate, the estate’s personal representative may need to determine whether selling the property is necessary.
In some cases, this issue might become a point of contention among the heirs. So, is the personal representative allowed to sell the deceased’s property? What if the heirs don’t want the property sold?
The role of the personal representative
A personal representative is responsible for managing the deceased person’s estate. Some of their duties include:
- Gathering estate assets
- Paying debts and taxes
- Managing the deceased’s property during probate
- Distributing any remaining assets to beneficiaries
If the estate includes a home, rental property or vacant land, the personal representative may determine that selling the property is necessary to properly settle the estate.
In some cases, the estate needs cash to pay outstanding debts, taxes or administrative expenses. Other times, multiple heirs inherit the property and can’t agree on what to do with it. Selling the property and dividing the proceeds may seem to be the simplest solution.
There are also times when the property becomes a financial burden. Mortgage payments, property taxes, insurance and utilities can quickly add up during probate.
The personal representative has a legal duty to act in the best interests of the estate and its beneficiaries. If they determine the property needs to be sold, then they will need to obtain fair market value for the property and avoid conflicts of interest.
Problems can arise if an executor attempts to sell property below market value or mishandles the proceeds from the sale.
Disputes among heirs are common, especially when the family home is involved. If those disagreements become serious, some of the beneficiaries may challenge the proposed sale in probate court. The court will determine whether the personal representative is acting appropriately and in the estate’s best interests.
Probate can quickly become overwhelming, especially when valuable real estate is involved. Working with a legal professional can help ensure the property sale is handled properly and that the estate administration proceeds as smoothly as possible.
