How to run an estate sale
Knowing how to run an estate sale is a must when there is a loss in the family and the deceased’s assets need to be liquidated. This kind of sale is also referred to as a probate sale because it undergoes the process of probate and is overseen by the probate court. Probate refers to the process by which the court decides how the deceased person’s property will be distributed among heirs.
In Minnesota, there are different kinds of probate procedures. If you want to know how to run an estate sale, you have to understand, at the least, the basics of these procedures and seek professional advice. Here are a couple of things about probate in Minnesota that you need to know about:
Why should an estate undergo probate?
The main purpose of the probate process is to protect the parties (creditors and beneficiaries) who have legitimate claims over the deceased’s assets. The probate court can determine how the assets are going to be divided and if a will or a claim is valid or not.
When is probate not necessary?
There are instances where probate is not necessary. According to the Minnesota Judicial Branch’s website, it is not needed in the following circumstances:
- The person owns no real property in his/her name alone.
- The person owns personal property in his/her name alone that is valued less than $50,000.
Even if a will is involved, it doesn’t automatically mean that there is no need for probate. There are different laws that govern this process. For Minnesota, you can refer to official website of the judicial branch for helpful information on how to run an estate sale.
How to Run an Estate Sale in Minnesota
Now, let’s take a look at how to run an estate sale in Minnesota through the probate process.
First, there are two processes by which a probate can go through: formal and informal. The formal process is required if the estate is complicated or if a significant amount of money is owed to creditors. If the estate is not complicated and small, the process to go through is called informal. If unsure what process to go through, a professional’s advice is necessary to assess the circumstances.
Different probate processes involve different steps, but, in a nutshell, one would have to do the following:
1. Organize Documents: First things first, you have to get all the deceased’s documents ready. These would include (but not limited to) estate planning documents, memorial instructions, a living trust and a will.
2. Open Probate Estate: Next thing to do is to talk to an estate lawyer to officially open the estate for the probate court.
3. Value the Assets: This step involves a professional appraiser to appraise the deceased’s property. Real estate, art work, jewelry and the like are included in the appraisal.
4. Pay Final Bills and Expenses: This would involve paying the deceased’s final bills as well as the fees incurred in administering the state.
5. Pay Income Taxes and Estate Taxes: This step involves filling out a hefty amount of IRS forms. Taxes are taxes and they also need to be settled before the division to the beneficiaries happens.
6. Balance Distribution: Whatever is left is divided to the estate’s beneficiaries.
The steps are not limited to just these 6 because it will depend on the type of probate process the estate has to go through.
Final Words
How to run an estate sale involves a few other details, but in summary this is usually what takes place. In probate cases, it’s always an advantage to talk to someone who is familiar with all the processes and legalities. This ensures that the estate sale is run legally without hassles.
When the owner of a property passes away, their property can become a burden due to mortgage, insurance and other fees. Handing over the property to a new owner can help lessen these expenses and complexities. No matter what, be hopeful and research your options. If you wish to sell, know that there are buyers in the market that may be interested in probate real estate. Gold Path Real Estate knows the process of how to run an estate sale because they are an experienced real estate solutions company that specializes in probate purchases around the Twin Cities area. Call 612-758-0071 today to discuss your specific situation and how Gold Path Real Estate may be able to assist you during this difficult time.