Sale of Real Estate, Mortgages & Insurance Coverage
In most probates, real estate is transferred directly to the heirs. For example, Mom, a widow, dies and wills her house to her two adult children. The two adult children take title to the real estate thru the probate process and then put the house up for sale. Or, one child decides they want the house, makes a deal with the other sibling and takes title to the house through the probate process. Transferring the real estate directly to the heir in the probate process is easy.
Selling of Real Estate In The Probate Process
Occasionally, real estate must be sold during the probate process. Perhaps, in the above example, the two adult children don't get along and neither wants the house. They don't want to take title to the house jointly and then have to sell it. Or, perhaps, the estate had debts to pay and the house has to be sold to pay off creditors. Or, perhaps, there are several heirs and it makes more sense to sell the house during probate and distribute the cash. Then the house must be sold through the probate process.
Selling real estate through the probate process involves either jumping through various procedural hoops to obtain court approval of the sale, OR, jumping through various procedural hoops to sell the real estate without court approval if the personal representative of the estate is given full authority to administer the estate under the Independent Administration of Estates Act, N.R.S. 143.300 et. seq.
Delay In Sale of Real Estate
To sell the real estate either with Court approval or without under the Independent Administration of Estates Act notice of sale at a particular price and time and usually involving a particular buyer is given. If that sale falls through, or if, after a home inspection the buyer demands a lower price to cover the cost of repairing discovered defects, the process of seeking Court Approval, or giving Notice to all heirs under the Independent Administration of Estates Act must be re-done.
Set Aside Without Administration For Estates $100,000 & Under
If the net value of the estate is no more than $100,000, the cheaper faster, "Set Aside Without Administration" process can be used if the real estate is passed directly to the heirs, but can NOT be used if the real estate is sold during the probate process.
For example, in the case discussed above, suppose Mom's house is worth $170,000 and there is a $110,000 mortgage and Mom has $30,000 in a bank account. The net value of the estate is the $60,000 in equity in the house plus the $30,000 bank account, making the estate worth $90,000. The house can be set aside to the two children using the cheap, fast "Set Aside Without Administration" process in most cases. But if the two children want the house sold through the probate process, it will be necessary to undertake the more expensive "Summary Administration" procedure. See Types of Probate In Nevada for more detailed information.
Publicly & Non-Publicly Traded Investments
The sale of publicly traded investments, such as stocks and bonds and mutual funds is very simple during the probate process and can even be accomplished in the "Set Aside Without Administration" in many cases. However, in the very rare situation where a decedent held non-publicly traded stock or some other non-publicly traded investment such as a mortgage in which the decedent loaned out the money, the sale of this assets will be a complicated matter during the probate process and this complication can be avoided if the asset can be given directly to the heirs in the probate process.
If your probate will involve one of these sales, our fees for doing the probate MAY or MAY NOT be higher than the standard fees set out on our Low Fees For Uncontested Nevada Probate page (depending on the situation) .