Estate Matters: Selling Real Estate

Posted on November 9, 2020 by Lifesong Funerals under cremation
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cremation services in Monticello, FL

After cremation services in Monticello, FL, the executor of the deceased person’s estate is responsible for handling all the matters of the estate. One of these matters may include selling the deceased person’s home and distributing the proceeds from the sale among the beneficiaries of the estate.

Your loved one may have already spelled out their wishes for any real estate they own (including their personal home) after they die. They may have decided to leave their personal home to one of the beneficiaries of their estate. Or they may have specified that their personal home be sold and the proceeds distributed equally among the beneficiaries or given to a specific beneficiary.

What ultimately will be done with your loved one’s house will depend on whether it is paid for, has a mortgage, or has a reverse mortgage. These scenarios may override your loved one’s stated wishes for what they want done with their personal home.

If the house was owned outright by your loved one, and they wanted it to go to a specific beneficiary, then this will be easiest for you. The beneficiary gets the house (it will be titled to them), and they can keep it or sell it.

However, if the house has a mortgage on it, then the beneficiary will need to get a new mortgage in their name to take ownership of the house. If the beneficiary is unable or unwilling to do this, then the house can be sold to pay the mortgage off. Any money remaining after the payoff of the mortgage will go to the designated beneficiary.

If the house has a reverse mortgage on it, then it is the property of the bank after your loved one dies, and the beneficiary (or beneficiaries) get nothing.

Your loved one may have specified that their personal home be sold and the money from the sale split between the beneficiaries. If the house is paid for, this will be a simple matter of selling the house and splitting the money from the sale.

However, if the house has a mortgage, then you must pay off the mortgage before any of the proceeds can be distributed to the beneficiaries.

If you will be selling your loved one’s house as part of your role of the executor of the estate, you should contact a real estate professional as soon as possible after your loved one dies. A real estate professional can give you insights about comparable home prices in the area and they can make suggestions about repairs or upgrades that you need to make that will make the home more likely to sell.

If you are selling your loved one’s personal home as the executor of an estate, you should have the house appraised by a professional appraiser. The appraisal value listed on tax documents does not usually reflect the actual value of the personal home and property.

A professional appraiser can provide you with the actual value of your loved one’s home and its property. You should share this information with the beneficiaries. You also now have a selling price that you can approach a real estate agent with.

cremation services in Monticello, FL

If the proceeds of your loved one’s personal home are to be split among all the beneficiaries, and one beneficiary wants to buy the house, you cannot let that beneficiary buy the house at a price that’s lower than its market value.

This is unfair to the rest of the beneficiaries. A good practice is to use the appraiser’s estate of the home’s value as a starting point to talk with all the beneficiaries about what price they would agree on to let one beneficiary buy the home.

For information about cremation services in Monticello, FL, including grief resources, our caring and knowledgeable staff at Lifesong Funerals & Cremations is here to assist you.

Lifesong Funerals

We have nearly twenty years serving families of all backgrounds. These families turn to us in their time of need because they are aware that we are leaders in our vocation, have the highest level of integrity and are committed to providing quality service.

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