After losing a loved one, families often face immediate financial pressures that make selling the deceased person’s home feel urgent. Whether it’s covering final expenses, paying off debts, or simply maintaining an empty house, the desire to list the property quickly is understandable. However, the answer to whether you can sell right away isn’t straightforward, as it depends entirely on how the property was owned and what estate planning documents exist.
When You Can Act Quickly: Trust-Owned Property
If your loved one placed their home in a revocable living trust, you’re in the best position for a fast sale. The successor trustee named in the trust document can typically take immediate action to list and sell the property, often within days or weeks of the death.
However, even with a trust, there are usually a few essential steps the successor trustee must complete first. These include obtaining certified copies of the death certificate, reviewing the trust terms for any specific instructions about the property, and ensuring all beneficiaries are properly notified. Some trustees also choose to get the property appraised before listing to ensure they’re meeting their fiduciary duty to maximize value for beneficiaries.
The trust structure bypasses probate court entirely, which means no waiting for court approval to proceed with the sale. This can save months of delays and thousands of dollars in court costs and attorney fees.
When You Must Wait: Property Without a Trust
If the property was owned in your loved one’s individual name without any co-owners or transfer-on-death designations, it likely needs to go through the probate process before anyone can sell it. This means the property belongs to the estate, and only a court-appointed executor or administrator has the legal authority to list and sell it.
The probate process varies by state and can take anywhere from several months to over a year, depending on the complexity of the estate and whether any disputes arise. During this time, the family is usually responsible for maintaining the property, paying utilities, insurance, and property taxes, even though they cannot yet sell it.
Special Situations That May Allow Faster Sales
Some circumstances might allow for earlier property sales even in probate situations. If the estate has significant debts or the property is deteriorating, the executor may be able to petition the court for permission to sell before the full probate process is complete. However, this requires court approval and typically involves additional legal steps and costs.
Properties owned jointly with rights of survivorship or with transfer-on-death deeds can also typically be sold more quickly, as they pass directly to the surviving owner or named beneficiary without probate.
What About Outstanding Mortgages?
Whether the property is in a trust or must go through probate, any existing mortgage remains attached to the property. The successor trustee or executor will need to communicate with the lender about the death and determine whether the mortgage can be assumed by heirs, needs to be paid off from sale proceeds, or requires other arrangements.
The Importance of Having Clear Authority
Before listing any property, it’s crucial to establish legal authority to sell. Title companies, real estate agents, and buyers will all require documentation proving that the person signing the sale documents has the right to do so. This might be trust documents, court orders, or other legal paperwork.
Don’t Go It Alone
Property sales during estate administration involve complex legal and financial considerations. Our Torrance probate attorneys can help you understand your specific situation, determine the fastest legal path to a sale, and ensure all necessary steps are completed properly.
Contact us today to discuss your family’s circumstances and learn how we can help you navigate the property sale process during this difficult time.