Yes! You can put a house out for sale in St. Petersburg or Clearwater Florida while it’s still in probate. Selling the home might be necessary to pay the required legal fees, estate debt, creditors, last income taxes, and in some cases, settle heirs’ conflicts.
It’s imperative to know how a probate sale works, but you must understand what the process entails first.
What is Probate?
Probate is the process of analyzing and transferring the administration of the assets of a deceased person. Probate involves an executor, a probate court, and beneficiaries. The probate looks into the value of the deceased assets, debts, taxes, and the identity of the beneficiaries.
Does Probate Cost Anything?
Yes. Florida probate comes in different varieties, so the cost depends on the representation.
Summary Administration applies when the deceased has been dead over two years or if the total assets are valued at $40,000 or less. The cost is dependent on a few factors such as creditors’ claims, nature of the assets, number of beneficiaries, and complexities that might arise from getting the will to any Florida’s circuit court.
Nonetheless, by the law of Florida, when the value of the estate costs over $40,000, it’s eligible for formal administration. Formal administration is applied when the valued assets are worth more than $40,000 and if two years haven’t passed since the deceased’s date of death. Based on Florida’s law, fees are dependent on the estate’s size.
A price list overview:
● An estate worth $40,000 or less—$1,500
● An estate worth between $40,00 to $70,000, probate cost is $2,250
● An estate worth between $70,000 to $100,000, the probate cost is $3,000
● An estate worth between $100,000 to $900,000, the probate cost is 3%
● An estate worth between $1 million to $3 million, the probate cost is about 2.5%
● An estate worth between $3millon to $5 million, the probate cost is 2%
● An estate worth between $5 million to $10 million, the probate cost is 1.5%
● An estate worth $10 million and above, the probate cost is 1%
Nevertheless, the expenses during probate also include accountant fees, court filing, executor bond fees, publication or notice fees, translation of will or documents.
How To Pay Your Probate Fees in St. Petersburg or Clearwater Florida
It’s advantageous to pay probate fees upfront. Your executor usually handles this process.
What Are The Stages of Probate Litigation in St. Petersburg or Clearwater Florida?
● You meet with your estate planning or probate lawyer in St. Petersburg or Clearwater Florida to sort out the will and death certificate of the deceased.
● You fill an order and petition to admit the original will to probate.
● Notify the beneficiaries
● The probate court issues a letter of administration. The letter states that the executor is your personal representative.
● The personal representative notifies creditors.
● The personal representative assesses the estimate and value of all the deceased assets.
● The executor pays all the estate taxes if there are any and creditors.
● The last round of accounting
● Distribution of the remaining assets, if any, to beneficiaries.
● Closing of the estate
Who Is Likely To Receive Funds From The Probate Process?
Those who get funded during probate depend on the facts of the situation. However, there’s an expectation. Below is the list of parties that will receive funds during the probate process.
● The county’s circuit court clerk of the deceased residence at the time of death.
● The circuit court’s judge
● Executor
● The attorney
● The deceased creditors, such as health care workers and credit card issuers
● IRS (internal revenue service)—if the deceased owned any federal taxes.
What Problems Come Up During A Probate Sale In St. Petersburg or Clearwater Florida?
Problems in a probate sale are mostly linked to the buyers. Below are some drawbacks that come up during a probate sale.
For Buyers
● It takes a long time before buyers can get access to the house. Sometimes, it ranges from months to years.
● You can become tied up in a probate battle if there is rivalry among the heirs of the real estate.
For Sellers
● There are additional expenses when you sell an inherited house in Pinellas county.
● Most of the decisions are dependent on the local court and executor.
What Are The Options To Sell A Home In St. Petersburg or Clearwater That Is In Probate?
As an administrator of an estate, trying to traditionally sell a house you inherited might be a bit challenging. And since the house was previously in use by the deceased, it might be in a state of disrepair. Hence, it’s advisable to consider other means. House flippers, cash buyers, and home investors are ways of handling your home sale if you want hassle free, speed and connivence of time.
● Selling to House Flippers –They buy your house in probate, patch them up and sell to another family. Selling your house to them would help if you don’t want to spare money on repairs.
● Selling to Cash Buyers – Cash buyers are similar to house flippers in that they buy a house in need of repairs and repair them. However, they differ from house flippers in that they don’t charge service fees/real estate commission and would even pay your closing fees.
Since you are dealing with Florida’s probate, you should get a cash buyer knowledgeable on the subject.
● Selling Your House to Property Investors – When you sell to property investors, it’s like the mix of both worlds—house flipper and the cash buyer. The investors buy the house in its as-is condition and either remodel it or rent it out for a few years.
What are the Tax Implications For Selling an Inherited Home In St. Petersburg or Clearwater Florida?
After selling an inherited house, it might be unclear how the tax implications would work. There’s something called the home sale tax exclusion. The home sale exclusion only applies when you have inhabited the house you wish to sell for two to five years. But since the house for sale is inherited, the exclusion doesn’t apply.
Also, if the inherited house sells for lesser than the fair market value, you can claim capital loss, though there are conditions attached to this.
Conclusion To Selling a Home in St. Petersburg or Clearwater Florida While In Probate
Selling a house in probate is not impossible. If you follow the process to the latter, it might not take as long as it conventionally takes before you close the sale. This article contains the basic knowledge on selling your house in St. Petersburg or Clearwater Florida during probate. If you need specific knowledge, you can reach out to a probate or estate planning attorney in St. Petersburg or Clearwater Florida.
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