Types of Probate
Steps to sell property in a conservatorship
File a petition to sell the property, detailing why it benefits the protected person.
The court will schedule a hearing.
If approved, the conservator may hire an agent to list, market, and sell the property.
Agents must secure the best offer, ensuring the sale complies with probate guidelines.
Court confirmation process
After the best buyer is located and the offer is accepted, the attorney involved will apply for a court date in order to confirm sale. Other potential buyers may appear in court and are allowed to outbid the previous offer.
Types of trust: Revocable
Revocable
In a Revocable Trust, known as living trust, a successor trustee is named who will act on the original trustee’s behalf. This may include family members, friends, attorneys, or even trust departments of banks. These trusts will dictate what happens to the assets, not a court or state law and lists beneficiaries intended to get financial benefit from the trust.
The benefits and flexibility of a revocable living trust
Having a Revocable Living Trust allows individuals to set rules, timelines, and stipulations for their estate while offering benefits such as avoiding probate, maintaining privacy, and enabling the grantor to modify its terms after creation. This type of trust is also an excellent tool for managing and protecting assets in case of illness, disability, or challenges related to aging.
Types of trust: Irrevocable
Key features of an irrevocable trust
Control transfers to the trustee, and the grantor loses ownership of the assets.
The trustee can sell the property privately or use a real estate agent.
Important features of these trusts include.
Cannot be modified after creation unless beneficiaries agree.
Assets are exempt from estate tax after the grantor’s death.
Helps individuals avoid probate court.
Top advantages of irrevocable trusts
Advantages of Irrevocable Trusts include no taxes or capital gains for the seller, asset value in the trust remains unchanged, the profit from the sale can be used for a new investment or paid out to the beneficiaries, and finally the assets in the trust are protected from creditors.
Trust transactions: only trustees hold authority
As with an estate, agents need to be careful in identifying the appropriate person authorized to transact trust business. It is not the beneficiary of the Trust, but the Trustee, who has the authority to hire an agent to assist in the purchase, sale, or renting of real estate titled in the name of the Trust.
Information for Real Estate Transactions with Trusts
Real estate transactions involving trusts can be complicated. They add another layer of legal issues, possible court involvement, and the potential restrictions in connection with purchases and sales of real estate. It’s recommended that agents consider consulting an attorney prior to representing the seller (or purchaser) of and also advise their clients to do so as well.
What is conservatorship?
Conservatorship is a legal process in which a probate court appoints a responsible person or organization, known as a conservator, to manage the daily life and finances of an individual who cannot care for themselves due to physical or mental limitations, and the conservator may require court permission to sell the individual’s home.
Stages of Probate
Process of probate:
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Filing petitions
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Obtaining Letters Testamentary
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Notifying parties
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Inventorying assets
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Managing debts, taxes, and distributions
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Working with an estate attorney and real estate broker to ensure smooth transactions
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Preparing property for sale
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Settling family agreements
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Exploring probate avoidance strategies
Contact Information
Changing Times Realty Group, PA Auction License # AY002447 PA Brokerage # SB065758
Clark Faggioli Broker / Owner
120 Compass Road First Floor,
Parkesburg, PA 19365
Phone: 610-857-4619
Cell: 610-842-8264
Equal Housing Opportunity. This material is based on information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete and should not be relied on as such. This offering is subject to errors, omissions, change of price or withdrawal without notice.
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