Selling the home when a loved one dies

On Behalf of | May 8, 2020 | Estate Planning, Probate

When it comes to selling the home of a person who has died in Colorado, the executor is generally in control of the process. However, they cannot begin to take steps to sell off the estate property until the debts of the estate are settled. This must happen before anything else because creditors have the right to file the first claims before the beneficiaries can be paid. Otherwise, the executor could sell the estate’s property, and creditors would be left holding the bag.

Assuming that there is an executor, family members would need to work through them when it comes to putting the home on the market. The executor would need to be in the loop on all major decisions such as the agent to use and the listing price. Certainly, they would need to approve of the overall transaction. It would usually be the executor who drives this process in consultation with the beneficiaries as opposed to the other way around.

When there is a will, the estate can only be settled after there is a grant of probate. If there is no will whatsoever, this is where the situation gets difficult. The court is then in control of the disposition of the estate. In any event, beneficiaries need to be familiar with all steps of the probate process so that they can protect their interests.

When an estate is going through probate, the executors and the beneficiaries may need legal counsel when the estate is going through the legal system. Probate proceedings can be orderly, but they may also take time. Probate can be a technical process for those who are not familiar with it. Any mistakes that are made can delay the final disposition of the estate and can increase costs. Thus, legal counsel may be beneficial.