You can sell an inherited property if you are the sole owner and there exists a will that proves your ownership. However, if you don’t have a ‘valid will’, then the state laws will decide how the estate is distributed. For this purpose, it is necessary to appoint an executor, find the beneficiaries and distribute the assets according to state laws.
The purpose of probate is to pay taxes and liabilities before distributing the assets. If you have a will, the estate will be divided as wished by the deceased person after all dues have been paid. This article discusses the probate process in Arkansas if you are planning to sell the inherited property.
The process of Selling Real Estate in Probate in Arkansas
Appoint an Administrator
The probate court judge will first appoint an administrator. He’ll be paid a fee after the process is over. A family member can give his/her name. The executor of the estate has some responsibilities, and it is essential that he understands the local laws. Any illegal payments or miscalculations can result in a penalty, and the executor will pay the fine. Once the administrator is appointed, he/she gathers details regarding assets of the deceased person.
He is further responsible for finding the legal heirs of the person. Living spouse(s), children, named beneficiaries, parents, siblings and other relatives can be legal beneficiaries. Close friends won’t get any share, unless, mentioned otherwise in a ‘valid will.’
Read How to Sell an Inherited Property without a Will?
Once the appointment is final, the executor controls the possession of all assets including any home. The bank accounts will be transferred to an estate account. For any real property, the court will issue a ‘Notice for land records.’ Designated retirement accounts and insurance policies are automatically transferred and therefore are not included in the inventory list. The right of survivorship allows joint tenants/partners and spouses to take over the ownership of the property without going to the court.
Appraising the Assets
The executor is responsible for gauging the monetary value of all the assets. He/she must note the Fair Market Value of all assets. For this purpose, the executor can use any of the following methods to determine the price of the house.
- Appraise the Property
- Get a Comparable Market Analysis
- Use reports from the tax assessment department
- Use the purchase price of the asset (If bought six months before the death of the descendant)
Other items of value (such as jewelry & antique pieces) should also be appraised. The executor must create a particular list and send it to all concerned parties and attorneys.
Paying for Court Expenses
The administrator has the right to dissolve an asset to pay for probate related expenses. All heirs must be notified of this action. In case of objection, beneficiaries get five days to respond to this notice.
During the probate process, the family can continue to use particular assets such as home/car provided it was used as a family asset before the death of the deceased person. The surviving spouse or dependents can ask for an allowance during the probate.
Payment of Debts
Within 14 days of the appointment of the administrator, a newspaper ad will be published notifying all creditors about the death and asking them to contact the court. Generally speaking, creditors get 150 days to file a claim. However, the executor can give them a particular deadline. All creditors must be informed by certified mail, and the date must not be less than 90 days away from the time of the notice.
Distribution of Assets
The executor will create a financial report showing that all debts have been settled. Once the debts and tax payments are clear, the administrator will divide the assets among the beneficiaries. The executor will sign an ‘affidavit of the closing of the estate.’ The probate process is complete at this step.
Hiring an Attorney
You can go without hiring an attorney. There are various parties involved. You need clear documentation, and you must fill multiple forms. People at the probate court will guide you, but they won’t provide personalized guidance for creating the documentation. If you need help at this step, then it is best to hire a probate attorney.
You can sell real estate in probate. If you need help, give 365 Property Buyers a call at (501)369-0365. Our team can buy your house as-is for a cash price within 14 days.
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