Yikes! You’ve Been Named an Executor: Now What?
Let’s be honest—being named the executor of a loved one’s estate is overwhelming. You’re probably thinking, “Okay… now what?” Don’t worry, we’ve got you covered! Consider this your “Everything You Need to Know About Being an Executor Guide” with a focus on handling real estate. Let’s break it down and make things a little less daunting.
What Does an Executor Actually Do?
As an executor, your to-do list can feel a bit intimidating. From tracking down the will to making sure funeral arrangements are in place, handling debts, and sorting out the probate process, it’s a lot. When it comes to real estate, here’s where you’ll need to step in:
Have the property appraised
Maintain the home’s value (yes, that means preventing things like burst pipes in the winter)
Sort through and appraise any personal items in the home
Ensure everything goes to the correct beneficiaries
Keep the property insured
Handle rent if it’s an investment property
Sell the property for a fair market price
Act as neutral as Switzerland to keep things fair for everyone
Aim to sell the home within a year (give or take)
The Drama: Dealing with Beneficiary Conflicts
This is where things can get sticky. Think Succession level drama. Everyone’s got a different idea of what should happen to the property. Some beneficiaries want to sell ASAP and cash out, while others are holding onto emotional attachments. Some may even want to keep the home as an investment or rental, while others want their share of the profits right now.
What if one of the beneficiaries wants to buy the property but offers a price way below market value? You’re not expected to mediate all of this yourself. If things get too heated, bring in a mediator to help. And if someone wants to buy the others out, the sale price should always be based on fair market value. Keep it fair, keep it calm.
Executor vs. Beneficiary: What’s the Difference?
As an executor, you’re essentially a trustee who’s responsible for administering the estate. You don’t own the property—you’re just managing it to ensure it’s properly distributed to the beneficiaries. Of course, you can also be a beneficiary, but being an executor alone doesn’t mean you inherit anything.
Executor vs. Power of Attorney (POA): Not the Same Thing!
It’s easy to confuse the two, but they’re totally different roles. As an executor, you’re carrying out someone’s wishes after they’ve passed. A Power of Attorney, on the other hand, gives you the authority to make decisions while they’re still alive. Important distinction!
Real Estate: Your Role as Executor
If you’ve got real estate to sell as part of your executor duties, it’s not as simple as selling your own home. Here’s how it goes down:
Step 1: Talk to a Lawyer
You’ll need a lawyer who specializes in estate law to guide you through your duties. They’ll make sure you’re staying within the lines and protecting the rights of the beneficiaries. Plus, they’ll help you avoid any potential disputes down the road.
Step 2: Get Letters of Administration (Probate)
Before you can do anything with the property, you need to go through probate, which legally proves the will is valid. This process gives you temporary ownership of the property, so you can sell it. You’ll need to file for “Letters of Administration” (aka probate), and a lawyer can help you make sure all the paperwork is in order.
Step 3: Gather All the Paperwork
While waiting for your probate to be processed (which can take a few weeks), you’ll need to gather documents like:
Property tax information
Rental agreements (if applicable)
Any condo fees or special assessments
Details on any rental equipment (water heaters, HVAC, etc.)
Step 4: Call a Real Estate Agent (That’s Where We Come In!)
We can help you assess the property, make recommendations for repairs or updates, and set the right price. Our job is to handle the sale from start to finish so you can focus on the big picture. We’ll also be your neutral ally when emotions run high among beneficiaries. Selling a home that holds emotional value can be tough, but we’re here to keep things on track and stress-free.
What If the Will Is Contested?
Okay, we’re not lawyers, but here’s the quick version: if someone contests the will, they’re questioning its validity. This can happen for a variety of reasons (e.g., concerns about fraud or whether the deceased was in the right state of mind when the will was made). If this happens, it can delay probate and cause some serious headaches, but it’s all part of the process.
Can You List a Home Before Probate?
Short answer: yes, you can! But there are pros and cons to listing a property before you have probate. While it might speed things up, there’s always the risk that you won’t have probate by the closing date, which could complicate things. In those cases, you’ll need to either amend the closing date or come up with a creative solution like a rental agreement or escrow.
Real Estate as Power of Attorney (POA)
If you’re acting as a Power of Attorney, things are a bit simpler. The person is still alive but unable to manage the sale themselves. You’ll handle the process much like you would selling your own home. Just remember, it’s your job to act in the best interest of your loved one, so don’t rush things or sell “as is” just to get it over with. We’re here to help you make smart decisions and maximize the sale for their benefit.
Bottom Line? It’s a Lot, But We’ve Got Your Back!
Being an executor is a big responsibility, but with the right team in your corner, you can handle it. From navigating legalities to mediating between beneficiaries and maximizing the sale of a property, we’re here to make sure everything goes smoothly. Let us take the weight off your shoulders so you can focus on what really matters—honoring your loved one’s wishes and taking care of the people they cared about most.