Handling estate administration on behalf of a friend or family member can be a challenge. Personal representatives may need to attend hearings in probate court. They have to secure estate resources. They may also need to liquidate assets to distribute their value among beneficiaries or use the funds produced to pay creditors.
In some cases, the estate plan created by the testator or the circumstances of the estate make it necessary to sell the home that the testator previously occupied. What do personal representatives need to know about real estate transactions during probate proceedings?
Prompt action is important
A personal representative technically has a fiduciary duty to the beneficiaries of an estate. Generally speaking, that means that they should act in the best interests of the estate’s beneficiaries. They often need to optimize the sale price of valuable resources so that beneficiaries inherit as much as possible.
There are several ways to achieve that goal when selling real property. For example, securing the property and preventing it from sitting vacant can help preserve its value. Working with an agent who can help with staging could inspire more competitive offers.
Personal representatives who have to liquidate high-value estate resources may need help protecting themselves and fulfilling their fiduciary duty. For example, they may need to carefully document their actions in case there is any controversy about their conduct in the future.
Having support throughout estate administration and probate proceedings can reduce the amount of risk involved for the personal representative of the estate. The higher the overall value of the state resources, the more likely beneficiaries are to scrutinize the actions of a personal representative and have expectations related to their inheritance rights.
