Inheriting a Property and What to do? | Will VS Trust Process
Dealing with an inherited property can feel overwhelming, especially if it involves navigating probate or managing a trust. I’m here to guide you through every step.
When someone passes away, their assets—like a house, money, and personal belongings—need to be distributed to their family. This is where probate and trusts come into play.”
Step 1 is to Determine Legal issues
Step 1 when probate is required: When someone passes away, even if there is a will in Nevada, the process of transferring their property to the heirs isn’t automatic. I will need something that shows who can legally list the home for sale and negotiate offers.
Probate is a legal process that verifies the validity of the deceased person’s will and oversees the distribution of their assets.
The probate court will appoint an executor. This person is usually a family member, or someone named in the will who is responsible for carrying out the deceased person’s wishes. They can sign the paperwork to list and sell the home. Depending upon what type of probate, an additional court date may need to be set so the court can approve the sale once we are in escrow. This can scare some buyers away from writing an offer as they don’t want to wait, or risk being overbid during the court approval.
I helped a client sell her father’s home last year. When her father passed away, he did not have a will or trust, so his estate had to go through probate. Unfortunately, this process took months and months, and the legal fees significantly reduced the amount of inheritance she received.
Step 1 When property is part of a trust, it’s handled quite differently than in probate. A trust is a legal document that allows you to transfer your assets directly to your beneficiaries. The documentation lists a trustee who manages assets for the benefit of the beneficiaries. I can immediately have the trustee sign the paperwork and get the home on the market. We do not need court approval to list the home or for the sale.
For example, I have clients that have listed their mother’s home with me right now. There was a trust and one of the sons is the trustee. We were able to immediately get the home on the market and we are already in escrow with a standard 30-day closing. They were able to bypass the probate process entirely without court involvement, no lengthy delays, and no hefty legal bills.
So, what’s the key difference? Probate is a court-supervised process that can be lengthy and costly, whereas a trust allows for a more streamlined, private, and cost-effective transfer of assets. For many people, setting up a trust can be a smart way to ensure their loved ones are taken care of without the added stress of probate.
Now you have a better understanding of the basics, so you are one step closer to making informed decisions about your inheritance. Remember, everyone’s situation is unique. One of the most important things you can do for your family is to consult with an estate planning attorney to determine what’s best for you and your family.
Step 2: Accessing the Property
The condition of the property affects its value and potential resale. Start by assessing personal property and removing items that will not be included in the sale of the home. Personal property like furniture, clothing and household items have become harder to sell or donate. During covid one of the largest consignment companies (Colleen’s consignment) with 4 locations filed bankruptcy and closed. Now there are currently a handful of consignment companies, but I find they are very busy and selective on the items they accept. Some of the donation companies charge to pick up so even donating is not easy. Some alternatives are selling items on Facebook marketplace or through the Next-door app. There are also estate sale companies and online auctions such as clarkcountyauction.com that can help with personal property.
Once the house has been emptied, it may be worth it to complete some repairs if needed. Items like replacing worn flooring and painting outdated colors or dirty walls can make a big difference. I have cleaners that do a deep move out cleaning. Buyers will deduct 3 to 5 times what they perceive is need in repairs so be proactive on these items.
Step 3: Next Access the market:
The real estate market fluctuates, and knowing the current market value of the property can help you decide on the best course of action. An appraiser will give you a good idea of the past sales but not necessarily what is currently happening in the market or what the home will sell for. For this value, it is better to talk to a real estate agent. I look at the past sales but more importantly I take into consideration what is currently listed for sale.
When I am recommending a list price, if there isn’t anything comparable listed sale, then I recommend a price higher than the recent solds. If there are several homes on the market, then I recommend a price lower than others that are not sold. An appraiser will give much more weight to the past solds where a good real estate agent gives just as much consideration to the available competing inventory.
Step 4: Making Decisions – Keep, Sell, or Rent
Keeping the home allows you to preserve family memories and maintain a connection to your loved one. Real estate often appreciates over time, potentially increasing the property’s value. If the property has a mortgage, you’ll need to ensure you can afford the payments and other monthly expenses such as utilities, HOA and maintenance.
Selling the Property provides a lump sum of cash that can be used to pay off debts, invest, or cover other expenses. Selling the home simplifies things for the estate by converting the property into cash, making it easier to divide among heirs.
Renting the Property generates a steady stream of income and can provide long-term appreciation.
However, managing tenants and property maintenance can be time-consuming and stressful. There’s always a risk of the property sitting vacant, leading to a loss of income. Income might fluctuate based on market demand and economic conditions.
Inheriting a Property and What to do? | Will VS Trust Process
Dealing with an inherited property can feel overwhelming, especially if it involves navigating probate or managing a trust. I’m here to guide you through every step.
When someone passes away, their assets—like a house, money, and personal belongings—need to be distributed to their family. This is where probate and trusts come into play.”
Step 1 is to Determine Legal issues
Step 1 when probate is required: When someone passes away, even if there is a will in Nevada, the process of transferring their property to the heirs isn’t automatic. I will need something that shows who can legally list the home for sale and negotiate offers.
Probate is a legal process that verifies the validity of the deceased person’s will and oversees the distribution of their assets.
The probate court will appoint an executor. This person is usually a family member, or someone named in the will who is responsible for carrying out the deceased person’s wishes. They can sign the paperwork to list and sell the home. Depending upon what type of probate, an additional court date may need to be set so the court can approve the sale once we are in escrow. This can scare some buyers away from writing an offer as they don’t want to wait, or risk being overbid during the court approval.
I helped a client sell her father’s home last year. When her father passed away, he did not have a will or trust, so his estate had to go through probate. Unfortunately, this process took months and months, and the legal fees significantly reduced the amount of inheritance she received.
Step 1 When property is part of a trust, it’s handled quite differently than in probate. A trust is a legal document that allows you to transfer your assets directly to your beneficiaries. The documentation lists a trustee who manages assets for the benefit of the beneficiaries. I can immediately have the trustee sign the paperwork and get the home on the market. We do not need court approval to list the home or for the sale.
For example, I have clients that have listed their mother’s home with me right now. There was a trust and one of the sons is the trustee. We were able to immediately get the home on the market and we are already in escrow with a standard 30-day closing. They were able to bypass the probate process entirely without court involvement, no lengthy delays, and no hefty legal bills.
So, what’s the key difference? Probate is a court-supervised process that can be lengthy and costly, whereas a trust allows for a more streamlined, private, and cost-effective transfer of assets. For many people, setting up a trust can be a smart way to ensure their loved ones are taken care of without the added stress of probate.
Now you have a better understanding of the basics, so you are one step closer to making informed decisions about your inheritance. Remember, everyone’s situation is unique. One of the most important things you can do for your family is to consult with an estate planning attorney to determine what’s best for you and your family.
Step 2: Accessing the Property
The condition of the property affects its value and potential resale. Start by assessing personal property and removing items that will not be included in the sale of the home. Personal property like furniture, clothing and household items have become harder to sell or donate. During covid one of the largest consignment companies (Colleen’s consignment) with 4 locations filed bankruptcy and closed. Now there are currently a handful of consignment companies, but I find they are very busy and selective on the items they accept. Some of the donation companies charge to pick up so even donating is not easy. Some alternatives are selling items on Facebook marketplace or through the Next-door app. There are also estate sale companies and online auctions such as clarkcountyauction.com that can help with personal property.
Once the house has been emptied, it may be worth it to complete some repairs if needed. Items like replacing worn flooring and painting outdated colors or dirty walls can make a big difference. I have cleaners that do a deep move out cleaning. Buyers will deduct 3 to 5 times what they perceive is need in repairs so be proactive on these items.
Step 3: Next Access the market:
The real estate market fluctuates, and knowing the current market value of the property can help you decide on the best course of action. An appraiser will give you a good idea of the past sales but not necessarily what is currently happening in the market or what the home will sell for. For this value, it is better to talk to a real estate agent. I look at the past sales but more importantly I take into consideration what is currently listed for sale.
When I am recommending a list price, if there isn’t anything comparable listed sale, then I recommend a price higher than the recent solds. If there are several homes on the market, then I recommend a price lower than others that are not sold. An appraiser will give much more weight to the past solds where a good real estate agent gives just as much consideration to the available competing inventory.
Step 4: Making Decisions – Keep, Sell, or Rent
Keeping the home allows you to preserve family memories and maintain a connection to your loved one. Real estate often appreciates over time, potentially increasing the property’s value. If the property has a mortgage, you’ll need to ensure you can afford the payments and other monthly expenses such as utilities, HOA and maintenance.
Selling the Property provides a lump sum of cash that can be used to pay off debts, invest, or cover other expenses. Selling the home simplifies things for the estate by converting the property into cash, making it easier to divide among heirs.
Renting the Property generates a steady stream of income and can provide long-term appreciation.
However, managing tenants and property maintenance can be time-consuming and stressful. There’s always a risk of the property sitting vacant, leading to a loss of income. Income might fluctuate based on market demand and economic conditions.
Deciding whether to keep, sell, or rent a probate property requires careful consideration of both emotional and financial factors. A probate realtor is an invaluable resource in this process, offering expert guidance tailored to your unique situation. I have experience in probate and estate sales. I have the Residential Real Estate Probate Specialist Certification. I will be your advocate when selling a probate home and help you with all aspects of the sale from handling the personal property to overseeing a smooth transaction.
