Having Your Home in a Trust Is Crucial- Insights from a Realtor Who Has Navigated Probate
I recently went through probate after the passing of my Dad in 2023. The experience has given me a unique perspective, allowing me to appreciate the sensitivity and patience required during these challenging times. It has reinforced my commitment to providing not just professional assistance, but genuine empathy and understanding to those facing similar circumstances. I offer these insights to assist you in navigating potential challenges and ensuring a smoother journey through this intricate legal process. I’ve been through the probate process and the below will help.
What I Wish I Would Have Known
Business Finances:
Maintain necessary cash for business operations in the business account. Loved ones may not automatically have access to business funds, and proper planning is crucial.
Deceptive Phone Calls:
Be cautious of calls pretending to be from attorney offices or the court. Often, these are Realtors seeking to list your home. Verify the identity of the caller before sharing information.
Unsolicited Offers:
Quite often investors, neighbors, relatives or friends may approach you offering an easier path to selling assets via all-cash or off-market transactions. The open market typically yields a better result. Consider all of your options before pursuing any kind of sale. You can also remind these people that they will be able to participate in the sale of assets in the open market along with everyone else.
Bank Account Transition:
Transferring funds can be challenging, particularly if there are outstanding obligations on the existing account. Consider opening a bank account under the Trust.
Negotiating Payments:
Keep an open line of communication to address financial matters. Quite often creditors will be willing to negotiate payments due from deceased accounts and/or late fees.
Administrator Selection:
Choose the administrator wisely, considering organizational skills, availability, and conflict resolution abilities. The right administrator can significantly impact the efficiency of the probate process.
Tax Implications:
Understand the tax implications associated with the probate process. Seek professional advice from a CPA, (I have referrals for you) to navigate potential tax obligations and optimize financial outcomes.
Hidden Assets:
Search thoroughly for hidden cash. Check every possible place – drawers, pockets, robes, attic spaces, containers, mattresses, pillowcases, and under furniture. My siblings and I nearly overlooked $3k tucked away in a container in a kitchen cabinet.
Probate Pitfalls
✓ Immediately get an appraisal for accurate data as of the date of death.
✓ Avoid making any changes to the property before obtaining the court letters.
✓ Proceed with caution when considering work on the property, as any alterations may impact your exemption from Seller Disclosures upon selling. It's advisable to consult with a Realtor® before making any decisions.
✓ Notifying creditors correctly is crucial to avoiding issues later on. They usually have a limited window to make claims against the estate, and it's essential to adhere to proper notification procedures.
✓ Prioritize over-communication with fellow beneficiaries to ensure transparency and understanding throughout the estate process.
Common Questions To Ask
How long does probate take?
Probate duration can vary, but it typically takes around 9 to 18 months. However, complex cases or disputes may extend the process.
How much does it cost?
The cost of probate in California is influenced by factors such as the value of the estate and attorney fees. Attorney fees are set by state law and are based on a percentage of the estate's value. Other costs may include court fees, appraisal fees, and executor fees. On average 5 percent of the VALUE of the estate.
Can you represent yourself without an attorney?
Yes, it is possible to handle probate without an attorney in California. I choose to work with an attorney due to the complexities, time, and emotions.
Do all assets go through probate?
Not all assets go through probate. Assets with designated beneficiaries (e.g., life insurance policies, retirement accounts) or held in joint tenancy may bypass probate. Additionally, assets held in a living trust are typically not subject to probate.
If I have a will, can I avoid probate?
Having a will does not necessarily avoid probate.
Can you sell when in probate?
Yes, it is possible to sell property during the probate process in California. However, the sale usually requires court approval, and the executor or administrator must follow specific procedures outlined in the probate code.
Heggstad petition?
A Heggstad petition is a legal process in California that allows the court to recognize a document (such as a living trust) as if it had been properly funded, even if there was an oversight in transferring assets.
TO FIND OUT MORE ABOUT THE PROBATE PROCESS CALL ME 925.787.1911
Jenica Martin San Diego Realtor®