What happens to the house when the owner dies? The existence of a valid will makes things easier. Rules of the state preside if the owner leaves behind property without a will. In both cases, the estate will have to go through the mandatory probate process.
Simplified Court Process
It’s possible to avoid the probate process if the estate value is below a certain threshold. Beneficiaries can claim their share by signing a simple affidavit. In most cases, the process is simple, and you don’t have to hire a lawyer.
Joint Ownership with Rights of Survivorship
Under the right of survivorship, the surviving spouse assumes the ownership of the property. In nine states of the US, “community property” describes the ownership of a house by a married couple. If one spouse dies, the other one can inherit the property. However, in these nine states, one spouse can choose to give away his 50% share to his heirs. In that case, the surviving spouse is entitled to his/her share only.
Joint ownership is another concept used when co-owners don’t have equal shares in the property. Suppose an individual owns 60%, and the other person owns 40%. In case of death, they both can leave their shares to their respective beneficiaries. Court involvement is required, and the property will have to go through the probate process.
Title by Contract Assets
It refers to assets that are passed to beneficiaries after the death of the owner. Insurance schemes, 401ks, and savings accounts have named beneficiaries and heirs can acquire these assets without court involvement. Real estate is different in that sense.
What Happens to the House When the Owner Dies: Probate Process
You’ll need to appoint an executor to administer the affairs of the estate. The executor ensures that all assets are collected, and all debts and taxes are paid on time. After all the debts are settled, beneficiaries can receive their share.
More often, several people are entitled to a share of the property. The executor must get the house appraised and sell it for a fair price. The home is listed. After confirmation from all parties, the executor sells the house in a court administrated auction.
Selling real estate in probate is a tough challenge. The house is often not in perfect condition. It’s a hassle to make the repairs, but without the repairs, you cannot find a buyer in the retail market. The entire probate process can take two years or more. If you are the executor of an estate or if your loved ones are trying to sell probate property, consider selling to a reputable cash buying firm in your area.
A trusted local company can present to you an all-cash offer within 24 hours. Legitimate companies know the local probate process. They can purchase your home fast for a fair cash price. You don’t have to worry about repairs, cleaning, or commissions.
Selling a probate house is a stressful job. If you need a helping hand, contact us, and we’ll buy the house in as little as 7 days.