What is a probate sale?
When a homeowner passes away and leaves behind a last will and testament that indicates how the decendent wants their property and assest distributed. In most cases the last will and testament are subject to “probate” in order to pay off debts of the decendent or to liquidate the assets. A probate sale is overseen by a court proceeding that administers the estate of an individual.
Purposes of “estate administration” include:
1. To determine that the decendent is in fact deceased.
2. To establish the valididy of the will.
3. To idendify the heirs and devisees of the decendent
4. To settle any claims that creditors may have against the estate of the decendent.
5. To distribute the property.
What is a trust sale?
In a trust sales court approval is usually not necessary, but there may be a legal requirement to give notice to certain interested individuals. A trust sale is very similar to a Standard Sale, except the trustee is exempt from disclosing any known material facts that may affect the value of the property (due to the trustee typically not being a resident of the property). Although the trustee is typically the main point of contact of the transaction they must manage the trust estate solely for the benefit of the beneficiaries and keep the beneficiaries of the trust reasonably informed of the administration. The trustee cannot profit from the trust and has a duty to take reasonable steps to control and preserve the trust property and to make it productive.
Some may argue that it is best for a homeowner to establish both a last will and testament and a living trust however, I advise that you consult with your attorney to determine what is the best option is for your situation.
Below is a simple video that described the benefits of having both.