A home may ultimately be the most financially valuable asset that a loved one leaves behind when they pass away. After a person’s death, the issue of whether their home can be sold, transferred or occupied immediately generally depends on how the home was owned and whether it must pass through probate.
Probate is the legal process used to administer a deceased person’s estate, pay valid debts and distribute remaining assets to the appropriate beneficiaries or heirs. If a home was owned solely by the deceased and was not transferred through another estate planning tool, it will often become part of the deceased’s probate estate.
What does this mean, practically speaking?
During probate, the court typically appoints a personal representative or executor to manage the estate. That individual is responsible for protecting the property, maintaining insurance, paying certain expenses and determining whether the home in question should be transferred to beneficiaries or sold. Until the probate process is complete, family members generally cannot assume they have the authority to sell or otherwise dispose of the property.
Not every home passes through probate, however. Property held in a living trust, owned jointly with rights of survivorship or transferred through certain beneficiary arrangements may pass directly to the surviving owner or designated beneficiary outside the probate process. The manner in which a property was titled is often one of the most important factors in determining what happens next.
Generally, however, mortgage payments, property taxes, insurance premiums and necessary maintenance do not stop simply because the owner has passed away. These expenses often continue during the administration of an estate.
At the end of the day, a skilled legal team can explain how probate applies to a particular property, help personal representatives fulfill their responsibilities and guide families through the legal steps necessary to transfer or sell a home while protecting the interests of everyone involved, consistent with the unique circumstances at issue.