Get Legal & Estate Clearance Well Before Listing • Ensure stakeholders are informed and family issues are worked through gracefully beforehand. Don’t surprise beneficiaries by going to market without everyone’s knowledge. • Probate or court clearance: Work with your attorney to get court approval if the estate is in probate or held in a guardianship. • Title clearance: Ensure property title is free of liens and encumbrances; gather mortgage documents; conduct a lien search. In the case of an estate-owned property, when there may be unknown factors at play, this process should be completed before listing. • Board approval (co-ops/condos): • Especially an issue in New York City: check building requirements for selling. • Locate co-op stock certificates or arrange for co-op title insurance. • Make sure your agent can help with preparing board “packages.” • If legal and emotional issues are not addressed before listing, substantial delays and expenses may be encountered later on. Create a Clear Path for Proceeds from a Sale • When property is sold from a trust or estate , the proceeds must follow strict guidelines for deposit to avoid potentially significant tax or other issues—such as endangering public benefits for a beneficiary, triggering liens from creditors, and the like. • Work with your attorney, CPA, & financial advisor to define the correct path for the proceeds of a sale to avoid tax and legal issues. • Guardians may need court approval not just for a sale but for the path of the proceeds. Planning & Timing the Sale • Selling at the wrong time or ignoring market trends and conditions can drastically reduce the sale price without you ever realizing it—or even lead to legal issues with beneficiaries. At the same time, of course, costs may mount as a property remains unsold. • A knowledgeable real estate agent with experience in your market, as well as in dealing with trusts and estates, can provide insights on the best time to list the property—taking into account legal encumbrances and local conditions. Sometimes waiting just a bit, or expediting the listing to coincide with a strong market can lead to much better returns. • Make sure to factor in property preparation time. It may take months to declutter and prepare a property. Set a deadline and work toward it. Don’t go to market without this preparation. • Keep stakeholders informed. The sales process may take a good deal of time. Have a plan for keeping beneficiaries and other stakeholders updated on progress. Inventory, Declutter & Remove Personal Items • A reliable inventory of goods within the home is crucial and often legally mandated. • Sort belongings into four categories: distribute to beneficiaries, donate, sell, or discard. • Depersonalize: Remove personal photos and memorabilia. • Hire help: Consider professional services for inventories, security, cleaning, valuations, restoration, selling, packing, organizing, shipping, and storage of valuable possessions, if needed. Here at Christie’s, we have trusted local partners for this kind of work.
Howard Morrel & Leslie Hirsch
Establish a Team • If the value of the real estate is significant, put together a team consisting of a qualified estate attorney, financial advisor, CPA, and specialized real estate agent with local knowledge and credentials in trusts & estates sales. In some situations, such as guardianships, legal registration of the real estate agent may be required. • A trusts & estates property sales specialist can advise you on all steps going forward, engage directly with your attorney and financial advisors, handle much of the required effort, and work patiently through legal processes, which may take considerable time. ELEVEN Essential Steps for Estate Property Sales
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