Succession planning and deceased estate sales

Selling a deceased estate is never easy because of the emotions involved. When your loved one has lived in a home for possibly decades, the decluttering and other issues can feel overwhelming. However, there’s a better way to approach this inevitability.

Planning ahead

When we retire, it’s a great time to think about succession planning. As you or your loved one heads into the last phase of life, there are questions you need to answer to make the process of selling your home and dealing with probate easier when you die. Questions include:

• Have you made a Will?
  To avoid disputes, you should make a Will clearly outlining your wishes.
• Who is your executor?( Have you considered using a public executor?)
  While it’s tempting to appoint a family member, this process can lead to disputes and legal action as that person or persons dispose of property and assets. In NSW, you can choose to engage the services of NSW Trustee & Guardian. The executor will assume the burden of carrying out your wishes as stated in your Will. The executor will also follow legal guidelines and be transparent about all the activities that need to be done. These include organising the funeral, protecting any assets, notifying the relevant authorities, selling assets at a fair market price, paying any tax due and more.
• Who gets your super?
  If you have nominated a beneficiary, your super fund will pay any residual super to that person. You should, to avoid disputes, nominate one or more beneficiaries in your Will.
• Who gets your house?
  Again, you or your loved one needs to nominate who will receive the proceeds of a home sale unless you’re married in which case the asset is deemed a shared asset and goes to your spouse.
• Do you have a family trust set up?
  Family trusts can complicate matters. They are considered non-estate assets and not necessarily covered under a standard Will. You can, however, in your Will, nominate a trustee who will assume the management of the family trust.
• Do you know how your heirs will navigate probate?
  The executor is legally responsible for probate. To apply for probate, the executor needs first to submit a notification of probate, then gather all relevant documents, publish a probate notice, wait 14 days and respond to court requisitions. This process is normally handled by a solicitor so, to help your heirs, it’s wise to appoint a solicitor well in advance.

Preparing a deceased estate home for sale

Selling a deceased estate requires you to follow the same steps as for any home:

• Declutter. This is probably the most important process and the one that will take the longest. Do this in steps so you don’t feel overwhelmed. First, create four sections: Dump, Keep, Donate, Family/Maybe. Start with larger items like furniture then work your way down to bedding, kitchen items, books and so on. A good tip is to place the Donate box next to the door you use to get to your car so you remember to take things to a charity shop. If you find yourself becoming too sentimental, hire someone else to help you. They’ll be more ruthless.
• Maintain. Get in a local handyman to fix any small maintenance issues like dripping taps, sticking drawers, rotting window sills, wonky handles and sagging doors. Repaint if possible. Get in a gardening service to trim, mow, edge and mulch the garden. Buyers want to see a property in pristine condition, move-in ready, or they’ll be looking for a discounted price.
• Clean. Get in a local cleaning service to make your home sparkle.
• Style. Engage a local home stager who will style your home to appeal to the most likely buyer group.
• Agent. Interview some local real estate agents whom you trust to set the right price for the property.

What about Capital Gains Tax (CGT)?

The rules for CGT are complicated. You may need to sell the home within a certain time to avoid paying CGT. Ask me for more information.

Can I help you with a deceased estate in The Hills

I’ve lived and worked in The Hills for most of my life. With my network of real estate, retirement village and financial contacts, I can guide you to the next steps you need to take to achieve your life goals. If you’re unsure of what needs to be done with a deceased estate, I can help.
Should one of these steps include selling your family home, talk to me. I can help you sell your home or recommend an agent while I act as your seller’s advocate.