Get a Consultation

Hess-Verdon & Associates

Call us Today

Can A Trustee Sue On Behalf Of The Trust

Can an executor sell a house?

Managing an inheritance is a sophisticated undertaking, and executors, grantees, and other relevant individuals should educate themselves on the process. All it takes to avoid blunders is to understand the estate dealings. It’s important to remember that even small mistakes can be costly, especially when dealing with large estates or complex deals.

There are many misconceptions about the estate process and its dealings, but one major point of confusion is whether an executor can sell a house. The answer is yes, an executor may sell a house, but only with

permission from the probate court. That means there are legal processes that you, as an executor, have to follow.

Are You an Executor Contemplating a House Sale? Here Is What You Need to Do

Before selling any real estate, you should first get clearance from the court. You will also need to notify the beneficiaries of the transaction and obtain their consent before signing any sales forms.

Seek Approval from the Court

Before selling any real estate, you should first get clearance from the court. You will also need to notify the beneficiaries of the transaction and obtain their consent before signing any sales forms.

Get a Real Estate Agent for Appraisals

Once the court approves your request to sell the property, you should hire a real estate agent to help you with the sale. It is crucial to ensure that the agent you choose is experienced in probate listings, as the process is slightly different from a traditional sale.

Draft a Plan to Distribute the House Sale-Generated Income

If the property is sold, the executor should distribute the funds to the beneficiaries named in the will. This action follows a three-step process. First, the executor has to prepare a deed for the sale of the house; they then have to determine how the proceeds will be distributed. Lastly, the executor needs to seek the court’s and beneficiaries’ approval.

Reasons why the court may authorize the executor to sell a house

Just because you have presented your request to sell a house to the court doesn’t mean you will get approval. The probate court will only approve your request if the reasons behind your petition are logical and in the best interest of the property’s beneficiaries. Some of the reasons

include:

The need for asset liquidation

Due to property taxes, turning all liquid assets, like houses, into cash may be necessary. If the probate gives the green light, the executor may sell off stocks, bonds, and the house.

The asset transactions’ earnings are subsequently put into a designated estate savings account. This account can pay off any pending debts, legal expenses, or other costs. The leftover sum is then transferred to

the beneficiaries.

If the trust does not disapprove of the sale

While the trust may not expressly prohibit the sale of a residence, the administrator has the power to sell the house without the beneficiary’s approval. Assuming the property is bequeathed to a beneficiary, this might seem perplexing. Yet, it’s logical enough in cases where the

indebtedness of the testator outweighs the asset value. The executor may therefore be permitted by the court to sell the house to settle the debts.

In the absence of a will, can the executor sell a house without the beneficiary’s approval?

The short answer is yes, but there are a few circumstances when that sale might not be allowed, for example, if there’s a good reason why

the house can’t be sold and the proceeds distributed.

It’s crucial to have a will, especially regarding real estate. Without one, the executor will have a lot of control over what happens to your house. Indeed, without a will, the executor can sell the house and divide the proceeds among the beneficiaries, regardless of your wishes. However,

an estate lawyer may stop the pending transactions if they can get a legitimate will.

Is an executor allowed to sell a property in probate?

The answer to this question is not always clear. It depends on the situation and the law in the property’s state. Generally, executors are legally allowed to sell any probate property. They are legally authorized to manage the house during the probate process and to conduct sales if outstanding debts need to be settled. By law, the executor should follow the proper channels when selling the house in probate. Additionally, the house should not be sold for 10 percent less than its appraised value.

With No Will, Can the Executor Sell a House to Themselves?

Without a will, the executor may have the option to buy out the assets from the surviving beneficiaries. For example, if a house is to be distributed among four beneficiaries, the executor could potentially buy out the shares of the other three. While the remaining beneficiaries might retain the option to stay in the house, their share of the residual funds would be adjusted accordingly. This arrangement might be acceptable to the surviving heirs as it can reduce closing costs. Instead of facing the expenses associated with selling the family home, such as real estate fees, marketing costs, and others, the beneficiary could choose to transfer their ownership and relocate.

Even if there is initial disagreement, the executor and the remaining beneficiary might come to a mutual agreement, possibly allowing the beneficiary to sell their share of the house at a later date when market values increase. Regardless of the arrangement, the law mandates that the sale price of the home should reflect its current market value. Any attempt by an executor to sell the house at a price below market value can be contested, as it may breach fiduciary duty, prompting legal intervention.

Final Thoughts — Can an Executor Sell a House?

The lack of a will grants executors considerable control over asset management. However, under specific conditions, the law permits an executor to sell a house, such as to liquidate assets for settling tax obligations or if beneficiaries advocate for the sale. The court may also authorize an executor to sell if the decedent’s debts surpass the property’s market value. Executors are allowed to purchase the property themselves, but the sale must be conducted at the prevailing market rate to ensure fairness and compliance with legal standards.

No Results Found

The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.

Can An Executor Sell A House?

“Absolutely top notch firm for handling all your estate planning matters.”

Dean Williams

Client Since 1995

Can An Executor Sell A House?

“Jillyn’s expertise and positive attitude, also wonderful staff. Jillyn’s the best!”

Mary Sipe

Can An Executor Sell A House?

“Jillyn’s knowledge. Always does a terrific job of explaining everything.”

Carol Netta