Many people may fantasize about a long lost relative dying and learning that they have been named in the will as a sole heir.
But the reality is many people do not even have a will made up decreeing who will get what.
In cases such as that, the estate enters a state of “probate” or the process of liquidating and consolidating all the assets to go to the next of kin. Often times homes and properties end up involved in this process and thus the term probate real estate will come into play.
What is Probate Real Estate?
Probate real estate is when a homeowner dies and no will is left to provide distribution guidelines for their assets.
In the case of probate real estate the court will get involved and appoint a personal representative to “manage” the overall liquidation of the property and maintain the upkeep of the entire estate.
How long does it take?
The probate process is time-consuming, often taking up to three years to fully resolve. Because of the precarious tax situation of probate estates, the courts assigned to these cases do not require the heirs to wait for probate to close before they sell the property.
Probate real estate can be sold early on so the proceeds from the probate real estate sale can be applied to paying off estate debts, expenses and taxes.
Annually over one million estates enter the probate procedure. Every year, thousands of properties become probate real estate and the heirs are generally in the rush to sell the property to pay off the estate debt, not get saddled with any personal expenses and to get their fair portion of the inheritance.