Probate and real estate can often become intertwined if what you own when you pass away includes property or other real estate investments. Knowing how probate works when it comes to real estate is important for both the estate beneficiary and the executor. Here are five things to know about probate and your real estate.
Probate For Real Estate Is Separate From General Probate
Probate is a process used to ensure that the deceased person’s wishes are followed, and that all financial obligations are met and all assets are distributed to the rightful heirs. For real estate, the process is slightly different due to the need to transfer the title of ownership and to ensure that any mortgage debts associated with the property are paid off. This is why the probate process for real estate is entirely separate from the general probate process, which will involve only liquid assets. The probate court will assess whether the person who died owned any real estate, and then its legal owner or owners will need to be determined. Special measures will be taken to ensure a clear title is issued, and that all mortgage payments are paid in full. All associated costs and debts of the deceased person’s estate must be settled before the estate can be closed.
Executing A Will Is Necessary
Executing a will consists of many important steps. This process starts with the executor reviewing the will and determining if it is valid and legally binding. Following this, the executor must file the will in the appropriate probate court jurisdiction. This process ensures that the will is legally binding and that the deceased’s wishes with regards to all of their real estate will be followed. Once the will is filed, the executor will then begin the process of transferring the deceased’s real estate to their heirs in accordance with their wishes. The executor will be responsible for transferring title documents and ensuring all financial arrangements have been made. Executing a will is a vital process to make sure that the deceased’s wishes regarding their real estate are followed and their investments are protected.
Probate Fees Depend On The Value Of The Estate
Probate fees are the cost associated with validating a person’s will and appointing an executor of an estate. These fees depend directly on the total value of the estate, as they are taken out of the estate’s funds. The exact rate of fees will vary depending on the state, with some states having a cap on the fees and others approaching 10% of the total value. In some cases, if the deceased person did not have a will, then the fees can be higher. It is important to check what the probate fees are for the given state, in order to ensure that the estate is being preserved.
Real Estate Taxes May Apply
Depending on the state you live in, estate taxes may also apply to the value of the real estate owned by the deceased. The percentage of tax varies depending on the location and if the property is located in more than one state, the laws of both states must be taken into consideration. Additionally, federal estate tax may also apply.
Selling Real Estate Can Take Time
Even when a will is in place and all of the legal paperwork for the real estate is valid, the process of officially transferring the title of the property can still take several months. On top of this, the executor must also wait for debts to be settled, taxes to be paid, and other factors to complicate the transfer. It is recommended that the executor consult a knowledgeable real estate attorney to help them navigate the complexities of the probate process when it comes to passing on real estate.
Overall, the probate processwith regards to real estate can be complex and lengthy. However, by understanding the basics of the process, both the executor and the beneficiary can better ensure that the transfer of the real estate is done properly and within a reasonable amount of time.
A Direct Sale Saves Time And Money
By selling your house directly and avoiding the MLS, you will be able to skip the repairs, showings, cleaning, commissions, closing costs, and waiting! You will save thousands on the holding costs alone. Selling a house you inherited in Biscayne Park doesn’t have to be complicated. Working with Down South Florida Home Buyers will save you time, money, and make a difficult process that much easier.
Dealing with probate isn’t fun for anyone. At Down South Florida Home Buyers, we can help you with unwanted real estate you would rather sell quickly than hold onto. We are happy to answer any questions you have about real estate and the probate process in Biscayne Park. There is never any obligation.