Often times during an estate administration, executor may be tasked with dealing with real estate. What happens with the estate depends on how the asset was owned prior to your loved one’s passing. There are many possibilities as to how the asset may be dealt with. An experienced attorney can help you to understand what steps to take next.
Five Possibilities for Real Estate During an Estate Administration
Generally, real estate is handled according to specific rules. Theses rules depend on how the asset was owned prior to your loved one’s passing. The following are five of the more common possibilities:
- If the real estate was held in a trust, the trustee of the trust must carefully review its terms of the trust. This way, the trustee can determine how to handle its management and distribution.
- Some real estate may be held in a limited liability company. If so, the LLC’s operating agreement may dictate what should happen next.
- Conversely, the estate may be held in your loved one’s name individually. In such a case, the terms of your loved one’s will may direct who should receive the property. In addition, they may also address how the mortgage on the property should be handled. For example, the mortgage could be paid from estate funds or whether the recipient inherits the asset subject to any mortgage or lien.
- If the estate was held jointly with others, including a spouse, the asset may pass automatically without the need for a more involved estate administration. Immediately upon your loved one’s passing, the property belongs to the other owner.
- If the real estate was held only in your loved one’s name individually, but your loved one did not have a will, the asset may be passed to your loved one’s heirs. As the person in charge of administering the estate, it is your duty to manage and protect the asset until it is ultimately distributed.
As the person in charge of administering your loved one’s estate, it is your responsibility to ensure that the real estate is handled properly. Fortunately, you are entitled to seek guidance. We encourage you to reach out today. Send us an email at any time that is convenient for you.
AttorneyThe Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307