Probate

After losing a loved one, it’s pretty likely the last thing you want to think about is a seemingly opaque but often required legal process called “probate.” It’s not as scary as it sounds. Probate is simply the process by which after someone passes away their assets are transferred to their beneficiaries, often family or friends. Working with the right experts, it can be much easier than you might imagine.

After losing a loved one, it’s pretty likely the last thing you want to think about is a seemingly
Not all assets must go through the probate process, but it’s typically necessary if the decedent owned assets solely in their name worth over a $150,000 and no “living trust” is in place.

Probate procedures vary state by state. In California, it’s useful to know a few terms. The person who passed away, in the probate process, is referred to as “the decedent.” The people inheriting their assets are referred to as “the beneficiaries.” The person in charge of distributing the assets to the beneficiaries is called the “personal representative.” If the decedent specifically named in their will who they wanted to manage the distribution of their assets, this person is known as the “executor.”

There are several circumstances where the sale of property may be necessary. For example, if the sale is necessary to pay debts and taxes, specified gifts to beneficiaries, the expenses of estate administration. Property can also be sold if the sale is in the best interest of the estate and the beneficiaries, if the will specifies the property should be sold, or if the will gives authority to sell the property.

The most common way of selling a probate property is through a real estate broker who specializes in probate in a private sale. Estate property can also be sold in a public auction. The sale price must be at least 90% of the appraised value from within the past year. A “notice of sale” must be published, typically by an attorney or broker, prior to the sale of property. A personal representative may sign an “exclusive right to sell” contract with a probate real estate agent for 90 days, that may also be extended in periods of 90 days. In the case of a probate sale, an offer must be accompanied by a 10% deposit.