April 28th, 2024 | Selling
What Is the Role of an Estate Executor When it Comes to Selling Real Estate
The passing of a loved one is one of life’s most heartbreaking experiences; however, each one of us is likely to go through it at some point.
That said, you will have certain responsibilities if your loved one has requested that you be the Executor of their Will. They are relying on you to ensure their wishes and disbursements to all of their beneficiaries are carried out according to their instructions. In this post, we’ll discuss in more detail what it means to be an Executor of a Will in Ontario and offer insight into fulfilling your duties, especially as they relate to real estate.
Obtain Legal Counsel
While the role of an Executor is critical, you should never feel as though you have to always be in the know. This is not something that you are dealing with on a regular basis. Though your Realtor® team is happy to answer your questions and provide you with compassionate guidance, we are not lawyers and cannot provide legal advice. It’s very important to connect with an estate lawyer who can guide you through the process.
An Executor has a long list of responsibilities ranging from appraising assets and contacting beneficiaries to clearing any debts from the estate and ensuring that any pets are taken care of. An experienced lawyer will help ensure you do not forget any of the important details.
Are you or a loved one thinking about downsizing? The posts below can help:
- What All Downsizers Need to Know About Buying and Selling in Ottawa
- Is It Better to Rent as a Senior in Ottawa?
- What Is the Art of Letting Go? How to Declutter Your Home At Last
Determine the Presence of a Will
Ideally, the discussion of a Will happens long before we have to invoke the will, while your loved one is still living and of sound mind. Though not always an easy topic to discuss, addressing estate planning early can ensure that your loved one’s wishes are implemented as intended, after their passing.
A formal Will saves significant amounts of time and money in legal proceedings to determine who gets what. Probate can be relatively smooth and streamlined to allow everyone to begin their healing process sooner rather than later.
Without it, the Ontario’s Succession Law Reform Act automatically goes into effect. In general, all assets will go to the closest next of kin, often a surviving spouse. However, it’s important to know that a common-law spouse is not entitled to an inheritance under this legislation.
When your loved one passes, one of your first tasks is to notify any beneficiaries about the death and their potential inheritance from the estate. You can do this by reaching out in writing to their last known mailing address or email address.
Collecting and Appraising Assets
Before you can oversee any disbursements, you must first know what assets the estate contains and an accurate estimate of their worth. This includes any real estate your loved one owned, as well as any cash in bank accounts, investments, or jewellery. Anything that has a monetary value will need to be accounted for. If the home is to be sold to distribute the proceeds, a local real estate agent can provide you with a CMA (Comparative Market Analysis) to determine what the home is worth.
Tracking down all assets can take time, unless your loved one has made a list of what they own, along with any bank and investment account numbers. If the estate owes property taxes or any debts, you must clear these before administering the Will.
Once you have a handle on the estate, it is also your responsibility to manage all assets until probate is complete and each beneficiary has received their inheritance.
Apply for Probate
What is probate and is it really necessary when your loved one has left behind a legal Will? Essentially, probate means the courts are officially granting you permission to carry out your duties as an executor according to your loved one’s wishes. If the deceased owned property or financial assets, you will likely need to apply for probate.
Probate will also be necessary in the event that the Will is invalid or does not name an Estate Trustee. If you determine that probate is necessary, you will want to begin the process as early as possible. Even with a valid and uncontested Will, it can take several months to complete.
Maintain Accurate Records
One of your most important responsibilities as an executor is to keep accurate records at all times. You are entitled to compensation, so you’ll want to keep track of how much time you spend carrying out your tasks, as well as any expenses you incur.
Accurate records will also allow you to prove to the courts and any beneficiaries that you have administered the estate properly.
No matter what the circumstances, selling a house can be an emotional experience. The posts below will help you stay on track:
- Why Sell Your Home When You’re Living Mortgage Free?
- How do I Sell the House of a Cherished Loved One?
- How to Sell Your Ottawa Home When You Have Kids or Pets
How the Chell Team Can Help
Another common task of an executor is to sell the home of the deceased so any funds can be distributed according to the Will. In Ontario, it is possible to list your home while probate is still in the works. However, we don’t recommend this since you cannot finalize the transaction until the courts have officially granted probate.
What you can do in the meantime is begin preparing the home for the market to ensure a quick and seamless sale when the time comes. You may not be able to do all of the renovations and upgrades you would typically make before listing a house for sale. In addition, any emotional attachment you have to the home or the memories it holds can make the thought of saying goodbye difficult.
That said, thoroughly cleaning and decluttering the home can help you get the best results, even if you choose not to renovate. If the process of disposing of your loved one’s belongings is too painful, you may want to work with a compassionate real estate team to handle this task for you.
Once you have gone through and obtained all meaningful and valuable items, your Realtor® can arrange for a team of professionals to take care of the rest, including the staging of the home, if required. This process can be very daunting and especially if as the the Executor you are also grieving a loss. Give yourself the time you need and don’t hesitate to get help. Over time, with great care and patience, the role of the executor will take a back seat to your own healing process.
Expert Real Estate Advice
Selling real estate on behalf of a deceased loved one is one of the most critical and complex tasks an Executor must perform. Emotional challenges aside, it is your duty to get the best results possible for the beneficiaries of the Will. This requires superb communication skills, in-depth knowledge about the market, and how to list and promote a property effectively.
By working with the Chell Team, you can be assured of expert advice at every turn, from assessing the value of the house in today’s market to negotiating with potential buyers and ensuring a seamless close of the transaction.
No matter what your journey holds, your role as an Executor is far easier when you can count on a friendly face and a kind word of encouragement from our experienced team members.
If you are you looking for more guidance as you proceed with the sale of property from an estate, our compassionate experts are here to help. Reach out today to mail@chellteam.com or call 613.829.7484 with any questions.
