Usually an executor is assigned to carry out the terms of a deceased estate in order to prevent matters being settled by an anonymous judge in probate. However, there are times when a court settlement is a preferable solution. One of those times is in disposing the real property of the deceased.
There are several reasons and some benefit to having a non-probate property disposed of in this manner, and this issue is something that an executor of an estate should take into consideration.
- It settles things with beneficiaries who prefer not to be in charge of a home or other real estate and all of the potential problems associated with property management. Let’s face it, not everyone wishes to live in the home of a deceased relative or to manage the sell, renovation, management, or rental of their property.
- In the case of multiple beneficiaries, it is a more favorable solution to liquidate the property and split the cash.
- In the case of debt settlement, it may be necessary to liquidate real estate in order to settle the deceased’s financial obligations.
- Liquidation of real property may be a stipulation of the will in order to satisfy other wishes such as the funding of a trust or charitable interest.
- It can be financially expedient to the beneficiaries of an estate to liquidate the real property when the expense of maintaining the property outweighs the potential financial gain of keeping it versus selling.
Sometimes the executor or the family of the deceased simply don’t have the time, the willingness, or know-how to handle real estate matters and for these and the above mentioned reasons, allowing the matter to be settled in this manner makes sense. It also serves to remove any potentially volatile emotional element from the process of settling an estate.