E342 Thank You to Our Listeners!
Anthony S. Park
Based on feedback from you, the audience, we're pausing these episodes and will focus on writing instead: Our blog: Our books on Reviews always appreciated! Thank you for sharing all your amazing questions and stories, and thank you for listening!
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E341 How Long to Transfer Real Estate After Death
Anthony S. Park
There is no legal time limit to transfer real estate after death. It could happen quickly, or it could take years. We’ve seen cases where the real estate doesn’t get transferred until generations later. A fast sale is ideal, because problems can emerge in the meantime. There is a lag between the date of death and when the executor gets legal authority to handle the property. So, even “fast” isn’t very fast. How long does it take to get preliminary letters? The executor does not have full authority over the estate until he gets letters testamentary (or letters of administration) from...
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E340 Reasons Not to Make a Loved One the Executor
Anthony S. Park
We’ve talked before about not making a loved one your executor. I recently read an article titled, “.” Here, we’ll add our own perspective for why it’s not a great idea. Being executor can be emotionally difficult It is a duty that begins almost immediately after the death of your loved one. You are grieving the loss while facing a list of daunting tasks. Even normal probate is a lot of work and can be tough while grieving. In a somewhat difficult probate, you . If you are also family and friends with these people, it can be awkward. They will continually ask you when they will...
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E339 Why Sharing Your Seed Phrase is a Bad Bitcoin Inheritance Plan
Anthony S. Park
In this episode, we will talk about self-custodied bitcoiners (not those who have their coin on an exchange or with a third party). Some bitcoiners share their seed phrase with their spouse or adult children. Or perhaps they share their cloned wallet with those trusted individuals. It’s temptingly easy, essentially . But, as we’ll discuss, it can be insecure for reasons you may not think of. Sharing your seed phrase can be dangerously . Relationships change One reason that this plan is not flexible is because relationships change. Married couples can become divorced or...
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E338 Should I Sell My Home Before I Die?
Anthony S. Park
This is a very common question that we get from Solo Agers. We’ll review the pros and cons of making that decision. Reasons to sell your home before you die The biggest reason Solo Agers want to sell their home before they die is because they don’t want to leave a mess for their loved ones. Otherwise, there may be a lot of cleaning, maintenance, and packing for the heirs to do. Additionally, the before it is in sellable condition. Another reason is that Solo Agers may want to downsize anyway. Downsizing is a different topic, so we won’t focus on that here. Reasons to...
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E337 Who Owns a House During Probate?
Anthony S. Park
When someone dies, many folks are confused about who owns the house during probate, right after the death. Technically, the heirs own it immediately upon death, subject to debts and taxes of the estate. But, sometimes is not clear who the heirs are. The probate process decides who exactly are the heirs and places an executor in charge to sort out all those debts and taxes. So, the heirs own the house, but if it is not clear who the heirs are, then you kind of need to wait to see who really owns it. Understandably, this is a bit confusing. We’ll cover common questions on who owns the property...
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E336 Risks of Being an Executor
Anthony S. Park
What are the risks of being an executor? An executor has a lot of power and responsibility during probate, but is correspondingly accountable for everything that happens within the estate. We’ll cover how an executor has risk of even personal liability, how long that risk lasts, and how an executor can protect himself from these risks. Executor personally liable for debts and taxes The executor has personal liability for debts, taxes, and anything wrong with the estate. If an executor makes an error, the court’s first reaction is to deny payment of the executor's commission. If the...
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E335 Why a Letter of Instruction for Bitcoin Inheritance Will Fail
Anthony S. Park
A letter of instruction will likely fail for your bitcoin inheritance plan and should have only a marginal role in your plan, if any. Search for “bitcoin inheritance” and you will probably find lots of people advising you to write a letter of instruction for your heirs. We talked about this and even provided a . Now, having spent a bit more time delving into different approaches to bitcoin inheritance, we’re de-emphasizing a letter of instruction. Note: this applies to self-custodied bitcoin, not held through a third-party. Educate your heirs A letter of instruction is a subcategory the...
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E334 Why Hire a Professional Trustee?
Anthony S. Park
I do serve as a professional trustee, not just executor, or our Solo Ager clients. We’ll cover why our Solo Ager clients are looking for a professional trustee, why they don’t use banks, and how much it costs to hire a professional trustee. Disputes between trustee and beneficiary Why are our Solo Ager clients looking for a professional trustee? The main reason is because of potential disputes between the trustee and the beneficiaries. Unfortunately, this kind of conflict is very common, even more so than between heirs and executors. A trust creates a much longer relationship: an estate...
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E333 Seller Credit When Selling Probate Real Estate
Anthony S. Park
This happens when the buyer agrees to a higher contract price, but the seller also agrees to credit back a set amount to the buyer, so the net purchase price is lower. For example, if the buyer wants the house for $250,000, they would set the contract price at $300,000 with a side agreement that the seller would credit $50,000 on the closing statement, effectively making the price $250,000. Why not just a price reduction? Co-ops (and sometimes condos and homeowners’ associations) want the closing price to be (artificially) higher to maintain their average price per square foot. They don’t...
info_outlineThere is no legal time limit to transfer real estate after death. It could happen quickly, or it could take years. We’ve seen cases where the real estate doesn’t get transferred until generations later. A fast sale is ideal, because problems can emerge in the meantime. There is a lag between the date of death and when the executor gets legal authority to handle the property. So, even “fast” isn’t very fast.
How long does it take to get preliminary letters?
The executor does not have full authority over the estate until he gets letters testamentary (or letters of administration) from the court. Preliminary letters give the authority to collect and manage property of the estate. They will not grant authority to distribute property. Preliminary letters are handy for entering the real estate for repairs, etc.
Theoretically, the executor can get preliminary letters within a week. They can be issued same-day in emergency situations. Realistically, getting the letters is a slow process. We’ve had properties with leaks and rodents, and it still took us weeks to get preliminary letters. We called the court daily and filed papers often, and it didn’t move as fast as we needed it to move.
If you have an estate without emergencies, you probably won’t get preliminary letters. If the court takes weeks to respond to emergency petitions, they aren’t going to move any faster for “normal” estates.
How to prevent foreclosure on inherited property
Undoing a foreclosure proceeding has legal costs and other implications. No one wants to deal with that. To prevent foreclosure, first notify the lender. Even though the mortgage company can’t give you much information without court letters, you should still inform them that you are working on the estate. If the lender doesn’t hear from anyone, they will go right to their foreclosure counsel.
When folks hear the word “foreclosure,” they think of mortgages. Your homeowners’ association or co-op board can also take action, because they aren’t getting paid either. Again, they won’t have the legal authority to work with you. But you can let them know that you are getting preliminary letters.
You should also look up and notify any other potential lien holders. There could be a mechanic’s lien, or a family member with a non-bank mortgage on the property. You might be surprised what a simple letter can do. Let them know that you are working on the estate so that no one else starts a process that is costly to undo.
What to do when property owner dies
There are certain things you can and can’t do without court letters.
First, you cannot forward the mail. The post office needs legal authority to do that.
You most likely cannot change the locks. Although, this is a gray area. If you are in a managed co-op or homeowners’ association, they will bar you from securing the property. You have a better chance of securing a property that is not managed. If you think it will be a contested probate, don’t change the locks. You can get in big trouble, especially in New York.
You may be able to winterize the property and secure it in other ways. Piled up mail and overgrown grass signal vacancy and can attract thieves or vandals. Even if you don’t have legal authority to clean up the newspapers, the court won’t give you a hard time deterring criminals.
Remember, the property manager may not even live in the same state. Make a relationship with the doorman or superintendent and notify them of the owner’s death. They can keep an eye on the property and let you know if something looks off. Without court letters, you won’t get access to the interior of the property. But, the doorman can let you know of a leak or pests or a problem that affects the nearby units.
Communicate with everyone until you get legal authority from the court to handle the property. Preliminary communication can stop a whole lot of problems from starting.
My book, “How Probate Works,” can help you know what to expect with probate real estate.