Being an executor for an estate that includes real estate can feel overwhelming. You’re responsible for managing and possibly selling property, all while making sure everything is done fairly and legally.

Here’s a straightforward guide to help you understand and manage real estate during probate.

1. Your Main Role

As an executor, your job is to protect and distribute the estate according to the deceased’s wishes or state law. This means:

[i] Securing and maintaining real estate.

[ii] Valuing the property.

[iii] Deciding whether to sell or transfer it.

2. First Steps to Secure the Property

[i] Change Locks and Secure the Home: Ensure the property is safe from unauthorized access.

[ii] Keep Utilities Running: Maintain utilities to prevent damage, especially in extreme weather.

[iii] Get Insurance: Standard insurance may not cover vacant homes, so get a policy that does.

3. Valuing the Property

To report accurately to the probate court and set the right price if selling, you’ll need:

Home Price Valuation: Work with a Realtor experienced with probate sale to get an accurate price valuation

4. Managing Property Costs

Until probate is complete, you’re responsible for:

[i] Paying Bills: This includes property taxes, utilities, and insurance.

[ii] Covering the Mortgage: Ensure payments continue to avoid foreclosure.

[iii] Keeping Records: Document all expenses related to the property.

5. Should You Sell or Keep the Property?

Consider these points:

[i] Estate Debts: Selling may be necessary to pay off debts or distribute assets.

[ii] Beneficiaries’ Wishes: Communicate with them to understand their preferences.

[iii] Market Conditions: Selling might make sense if the market is favorable or the property needs too much upkeep.

6. Tips for Selling the Property

[i] Hire a Probate Savvy Realtor: An experienced Realtor can guide you through the sale.

[ii] Prepare the Home: Make simple repairs and clean up to attract buyers.

[iii] Be Transparent: Let potential buyers know the property is in probate, as it might affect the timeline.

7. Legal and Tax Considerations

[i] Court Approval: You might need this to sell the property, depending on state laws.

[ii] Capital Gains Tax: The property’s value is often "stepped up" to the date of death, which can reduce taxes when sold.

[iii] Estate Tax: Be aware of any potential estate taxes that could apply.

8. Get Help from Professionals

You don’t have to do it all alone. Work with:

[i] A Probate Attorney: For legal advice.

[ii] A CPA: For tax guidance.

[iii] A Real Estate Agent: For selling or valuing the property.

[iv] Contractors For any needed repairs or upkeep.

9. Keep Everyone Informed

Clear communication with beneficiaries helps manage expectations and reduces conflicts. Let them know about significant decisions and progress to keep everyone on the same page.

Conclusion

Managing real estate in probate doesn’t have to be overwhelming. By securing the property, valuing it correctly, managing expenses, and considering the best approach for the estate, you can fulfill your duties effectively.

Rely on professionals when needed, and keep beneficiaries informed to make the process smoother.