I Just Inherited Property in Probate, What Happens Now?

The 3 key players in probate inheritance

When a loved one passes away, three key players typically come into the picture during the probate process. Each one has a part to play in making sure the estate is handled properly, and the inheritance reaches the right people. Let’s take a closer look at who they are.

Player 1: The probate attorney

The first person you need to contact when you inherit property is a good probate attorney. A probate attorney will tell you what documents you need for court, draft and file the probate petitions, and speak on your behalf to the judge presiding over your case. Your lawyer advises you on the steps you’ll need to take throughout the probate process.

When selecting your probate attorney, follow these tips:

• Ask about their probate experience: Probate can get complicated, with plenty of paperwork, state-specific rules, and potential disputes over wills and trusts. Before hiring an attorney, ask how long they’ve practiced probate law and how many probate cases they’ve handled. This can give you a better sense of whether they have the experience to handle your situation.
• See if they specialize in unique scenarios: If your probate case comes with special circumstances, such as farmland that needs to be harvested or a tenant living in the property, ask the attorney if they’ve dealt with similar cases before. You can also check their references or speak with past clients about their experience.
• Make sure they’re a transactional lawyer: This gives you peace of mind that your lawyer knows how to handle the paperwork and administrative side of probate, which usually makes up most of the work in an uncontested case. You’d typically only need a probate litigator if there’s a dispute that needs to be resolved in court.

Once you choose your attorney, establish a good rapport with them. You need to feel comfortable communicating with your attorney because the probate process is a lengthy one.

According to Sacramento-based probate attorney John Palley, “Many states, like California, are in a traditional, formal probate process with a timeline that takes six or seven months to a year or more on the long end.”

Player 2: The probate real estate agent

When you’re dealing with grief and all the ins and outs of probate, it’s easy to go with someone you already know, like your favorite real estate agent. But unless they have experience handling probate properties, it’s worth finding an agent who does. They’ll be more familiar with the process and can help you avoid some of the headaches that can come with selling a property tied to an estate.

Most probate sales work a lot like regular home sales, but there are a few important differences that can make things more complicated. A probate real estate agent knows how to navigate those situations, whether that means selling a property that needs court approval or handling contracts when the home is still in the decedent’s name.

If you don’t live near your inherited property, you’ll need to hire a probate agent who’s local to the property. This ensures that your agent knows the laws and ordinances of the property’s home state, city, and county that may affect your sale.

For example, if your inherited property has a current tenant with a lease agreement, your probate agent will know if local regulations allow leases to be broken upon the death of the property owner. If not, your probate sale may have to wait until after the lease is up.

When you’re interviewing agents, checking their probate experience is the top priority. Find out how many probate properties they’ve sold within the last year and if the homes shared similarities with yours, such as size, value, and location.

Before you can officially list an inherited property with a probate agent, you’ll need to get the green light from the probate court. While you’re waiting, your agent can still help with important steps, like giving you a market update, figuring out what the property is worth, and talking through what you’ll need to do to get the home ready for the market.

Player 3: The personal representative

The personal representative is the person who handles the final business of the estate, including taking care of the decedent’s affairs and distributing assets to the beneficiaries. In many cases, that person may be you, especially if you’re the only heir, were named as the executor in the will, or filed the Petition for Probate. But if the beneficiaries don’t agree, there’s a contested will, or some beneficiaries live out of state, it may make more sense to bring in someone else to handle the estate.

Sometimes called a professional fiduciary or a paid executor, this person acts as a neutral third party who handles the estate. Because they aren’t a family member or beneficiary, they can take a more objective approach when it comes to inventorying, selling, and distributing the estate’s assets.

“The professional fiduciary acts as the personal representative and takes the burden off of the family members, and then they don’t have to worry about it,” says Palley. “They can just wait until it’s over and then checks will arrive.”

Several states, like California and Arizona, have organizations to help individuals find the right professional fiduciary. Most probate attorneys will also have recommendations for professional fiduciaries who have worked well for them in previous cases.

»Learn more: Selling an inherited home can come with more costs than you might expect. Use the Seller Closing Cost Calculator to estimate your closing costs and see how much you could keep from the sale.

The 3 phases of probate inheritance

The probate timeline can be broken down into three main phases: pre-petition for probate, administration of the estate, and closing of the estate.

Pre-petition for probate

The first phase takes place before your attorney has filed a Petition for Probate with the probate court. Until this first hearing, you’re not yet the executor or personal representative even if you are so named in the will. This means that you have no legal authority to take any action in regard to the estate just yet.

At this time, you’re simply gathering the decedent’s documents that you need to file the petition. While probate law and document requirements vary from state to state, in most cases, you will need a copy of the death certificate, the original will (if available), and the formal petition forms as prepared by your attorney.

Typically, the court hearing on the probate petition is scheduled for several weeks or months after the initial filing. During that waiting period, you can and should maintain the property, choose your probate agent, and send out a notice of probate to beneficiaries and creditors.

If you can’t or don’t want to wait several weeks or months for the scheduled hearing, you may request your probate attorney to file for an emergency ex parte hearing to ask that you be named as the personal representative immediately. However, your request may not always be granted.

“Some courts, like my home court in Sacramento County, will only issue the ex parte order if there is some urgent nature,” says Palley. “For example, if the house is in foreclosure, and there’s a foreclosure sale date coming, that would be urgent.”

Administration of the estate

Once the first probate hearing arrives, the court will grant you or your professional fiduciary letters of administration if there’no will, or letters of testamentary if there’s a will. These letters grant the personal representative the authority to transact business on behalf of the estate.

During the administration phase, you’ll start wrapping up the decedent’s final affairs and getting the estate settled. This can include paying off debts, filing the final tax return, distributing assets according to the will, and selling the house.

To pay the decedent’s debts and receive funds into the estate (such as a life insurance policy payment), you may need to set up an estate account. And to ensure that all of the decedent’s debts and assets are accounted for, you’ll need to do a formal inventory of the estate. This includes everything from property, heirlooms, and jewelry to bank accounts, stocks, and life insurance policies. The inventory will become a key record for the court to ensure that all the assets and debts have been accounted for and addressed.

Of course, selling the inherited property is usually the biggest and most time-consuming part of this phase. How the sale plays out will largely depend on the authority the probate court gives you to handle the estate.

If you have independent administration rights, selling the probate property is pretty similar to a traditional home sale, with just a few differences in the contracts, forms, and disclosures.

With dependent administration, though, things work a little differently. The court will need to approve the sale before the deal can close. At the confirmation hearing, your attorney will present the offer you accepted, but the court doesn’t have to approve it automatically. To make sure the property sells for as much as possible, the court can open the sale up to an overbid process.

The overbid process works a lot like an auction, with the court setting a starting bid based on the offer that was presented. From there, other buyers can bid, and the court will accept the highest offer and confirm the sale at the hearing.

After the sale, the proceeds go into the estate’s account and can be used to pay outstanding debts, including taxes and creditor claims. Whatever is left can then be distributed to the beneficiaries when the estate is closed.

Closing the estate

After the debts are paid, the house is sold, and any personal belongings have been distributed, you can move on to dissolving and closing the estate. The exact paperwork and steps for closing probate vary by state, but this final step is often referred to as the final accounting.

The final accounting is a detailed report that shows all legal and financial transactions that took place during the administration of the estate. It will include the formal inventory, records that show any debt claims paid, and all the documentation from the house sale.

Your probate attorney and real estate agent can assist you in gathering all the necessary documentation for the final accounting. Your attorney will then file an affidavit requesting that the probate be closed.

Once all your estate accounting checks out, the court will grant the probate closure. At that time, estate funds are then used to pay court costs and attorney fees, with the remainder distributed to the beneficiaries.

Consult With an Experienced Agent in Your Market

HomeLight’s free Agent Match tool can connect you with a top-performing agent to help you make the best decisions about selling a house you have inherited. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.

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Let a team of professionals simplify your probate sale

Selling a home through probate can be a lot to take on, especially when you’re already dealing with the loss of a loved one. From court paperwork and deadlines to getting the property sold and distributing the proceeds, there are plenty of moving parts to keep track of. Having the right professionals by your side can take some of that weight off your shoulders and help keep the sale on track.

A probate attorney can help with the legal side, while an experienced real estate agent can guide you through the sale itself. When you’re ready to sell, partner with a top-performing agent through HomeLight who can help you navigate the process with confidence.

Editor’s note: This article is for informational purposes only, not legal advice. If you have questions, talk to a probate attorney.

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