The duty you have before you if the executor of an estate is likely to become challenging. When someone passes away, it’s difficult to say goodbye, and having a lot of new and strange obligations can make it extra harder.
Your task will entail dividing up the deceased’s assets, which includes any real estate they may have held. The procedure can be made much less stressful by understanding what to expect, even though it might initially appear overwhelming.
Here are some things you should be aware of if you’re getting ready to distribute property as an executor:
From securing the death certificate to planning the funeral, an executor may handle a number of tasks. Of course, gathering the deceased’s assets, paying off their outstanding debts, and distributing what’s left to their beneficiaries are the three most important steps (those named in their will).
Keeping the above in mind, you’ll have some specific obligations while allocating the proceeds from a real estate investment (known under these circumstances as an estate home). The following are the key actions you must take:
- Securing the property
- Having it appraised
- Checking that it’s insured
- Maximizing income if it’s a rental
- Selling it for the right price
Make sure it’s secure in the beginning, whether it’s a house, cottage, or some other kind of property. The last thing you want is for the estate home’s value to drop. If it’s a rental property, try your best to negotiate a rent that’s comparable to what’s being asked for nearby structures or apartments.
Not to mention, you’ll probably decide to sell the property for its fair market worth and divide the proceeds among the recipients. Here is a possible illustration of that.
Read another Blog: Thinking About Selling an Inherited House in Ontario? Here’s What You Should Know
It’s not always simple to sell an estate house. Prior to listing the property for sale, you must first get probate. The validity of the will and your authority to serve as executor are both confirmed during this procedure. Within 6 to 8 weeks after filing with the court, you can obtain probate.
Be aware that the timing can become problematic if you list an estate property before you receive probate. Unless the buyer agrees to make their purchase contingent on you obtaining it or they agree to extend the closing date, you won’t be able to close without it.
A loved one who was mentioned in the decedent’s will is frequently the one who wishes to buy the property. If all of the other beneficiaries agree, they could be able to purchase it for less than fair market value.
You shouldn’t need more than a year to complete the estate’s administration in total (usually less). Be mindful that the beneficiaries may ask to have your work reviewed. The courts can examine your actions more closely to make sure they were legal through a procedure called “the passing of accounts.”
Last but not least, you merit payment for your labour of love. Generally speaking, executors take about 5% of the estate’s worth to distribute to beneficiaries. Ask your attorney if you have any questions about this.
Where to turn for help
Being an executor may be challenging, especially when real estate is involved. Thankfully, there are experts who can make the procedure less nerve-wracking.
Start by locating a superb legal authority. Make a sensible choice if you want an estate lawyer to be your closest ally during this strange procedure. Prepare a list of inquiries to pose to any expert you are considering working with after conducting some preliminary study, gaining an understanding of your function.
You should choose the best real estate agent if you plan to sell a house. The ideal candidate would have previous experience marketing estate properties. They should have a general understanding of how to appropriately price a home, be flexible with your schedule, and show compassion in sensitive circumstances.
Being an executor has many perks and challenges. It can be a great honour to carry out someone’s final wishes and assist their beneficiaries, and it needn’t be as difficult as you might imagine. You may contribute to making sure the process is effective and easy by being aware of what to anticipate and collaborating with the correct people.
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