By Ron Wynn
(This article was previously printed in the Culver City News)
Inheriting a home comes with many responsibilities and important decisions, but first before deciding whether to sell, lease or keep a home for the family to enjoy, there are some things to be mindful of once you are notified that a dear one has passed on.
1. As soon as possible, go to the property and gain access. Be sure the home is secured.
2. Remove all important documents and bank statements, including trust papers and the deceased’s will if available or attempt to gain access to documents in the safe deposit box if you have proper authorization.
3. Review all trust and will documents to determine who exactly is the successor trustee(s) and who the trust attorney was who drew the documents.
4. Contact the trust attorney and next the family CPA for consolation.
5. Notify banks and establish a trust bank account for business purposes. Keep careful records of expenses.
6. Continue to make mortgage payments and pay property taxes when due. Keep up on utility bills and gardeners.
7. Speak with neighbors who may be reliable. Ask to please keep an eye on the house. Set up a light with timers to make the home appear occupied.
8. Ask the neighbor and gardener to please pick up flyers and leaflets and junk mail left at the door.
9. Call a reliable realtor; someone also active in the area with a good reputation, for referrals for a good estate sale company, and for an overview on the local market. Get a written letter of value, supported by recent comparable sales. Also get an assessment of rental value as well. Get values for “as is” and also, a projected value with minor upgrades including fresh paint, refinished floors and handyman projects completed.
10. Check with the estate attorney to determine when you are free to move forward to either lease or sell, or whether the sale might require a court approved document, if the property must go through probate. Probate can present obstacles and delays which you will need to understand.
11. Meet a second time with a top-notch real estate agent for the pros and cons to sell “as is” versus to fix the house first and ask to see a detailed marketing strategy. Possibly have the agent get bids for necessary repairs.
12. Have a family meeting to discuss all the information you have been provided and also to discuss the options of selling, leasing, keeping the house for family use and also evaluate the possibility of perhaps one family partner buying out the others. You might also look at the market, and together, decide to sell in a year or two if there seems to be a good reason to wait.
13. Speak again with your tax advisor, financial consultant and realtor for their prospectives on your after-discussion thoughts for moving forward. Take into consideration their input and also evaluate the risks of trying to sell privately either to a family member, friend or neighbor.
14. Be extra careful if you are a successor trustee acting on behalf of other beneficiaries, not to put yourself in the position of showing favoritism or of opening yourself to liability for selling without exposing the property to the market, with an agent who is a family member, personal close friend or beneficiary of the trust; in other words — “You want to keep everything in arm’s length.”
15. Make a final decision to lease, sell or keep for the future. Be sure to consider your ability to keep the house and other financial responsibilities current.
16. Discuss with family members and beneficiaries the liquidation of personal property after referring to the will or trust to determine if there were any specific, liquidation specifications or instructions. Otherwise, arrange a meeting and agree on a procedure to divide contents of choice among the beneficiaries and after, come up with a plan of action to either donate, sell or dump remaining personal property. Then, with the assistance of your realtor or estate liquidator, have the house swept and vacuumed when vacant.
Ron Wynn is designated as the #30 agent in America by Real Trends— Wall Street Journal. His specialty is representing sellers and trustees for the sale of homes in the Westside communities of Los Angeles, Santa Monica, Brentwood and Pacific Palisades.
Named as one of the top 100 sales associates by The Wall Street Journal for the past 10 years, Ron Wynn was previously among the top 10 agents for Coldwell Banker® in the world for over 15 years consecutively, currently hold- ing the number 14 position among all agents for the state of California and #49 among all agents in the United States.