How to Sell Property That Is Exempt From Probate
Only the new legal owner can sell the property of a deceased person that was exempt from probate. Generally, property exempt from probate automatically belongs to someone else with a simple title transfer. A probate exemption allows a piece of property to be automatically transferred to an heir without having to go to probate court and be considered a part of the estate -- which can then be used to pay off estate debts and taxes.
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Instructions
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File the correct forms with the probate court to ensure that the property doesn't lose its exemption. Examples of exempt property in some states include joint bank accounts and jointly held real estate or vehicles.
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Obtain a copy of the death certificate from the funeral home that handled the burial, if applicable. If not, request a copy from your local Department of Vital records.
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Discuss with the lender of the residence -- if applicable -- whether you want to offer an assumable home loan, wherein the buyer is offered the same interest rate and repayment structure you have. An assumable loan is an attractive option that may help you sell the property more quickly.
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Transfer the title of any jointly held vehicles into your name at the Department of Motor Vehicles. Bring a copy of the death certificate, the current title and your identification in when you visit.
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List the item for sale as usual. If you're selling property, consider using a real estate agent or a real estate lawyer to help you navigate the forms, legalities and negotiations. If you're selling a car, simply give the new owner the title to transfer to his name when the payment is complete.
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Tips & Warnings
If property was jointly held, it already legally belongs to you without having to file forms. Real estate left to you in a will, on the other hand, must be probated and isn't available for sale without probate.
Probate exemptions vary by state.
