Deceased-No Heirs...What Do I Do Now?
I am looking at pre-foreclosure list and am running across "deceased-no heirs" properties. Do I make an offer to the bank? Is this a good lead to follow?
Thanks,
Ana
I am looking at pre-foreclosure list and am running across "deceased-no heirs" properties. Do I make an offer to the bank? Is this a good lead to follow?
Thanks,
Ana
If the deceased left no will, and no heirs can be located, the state will get all the assets by what is called escheat!
Escheat: When property and/or an estate is transferred to the government because a person has died without a will or an heir to his or her estate.
The probate judge then appoints the executor named in the deceased's will (if no will was found, the court appoints an estate administrator) to collect and distribute the estate assets, after paying any creditors who submit claims. Executors and administrators should question all claims submitted because some people submit bogus claims, knowing the heirs often have no way of verifying if the claim is valid.
Unless waived in the will, or by the heirs, a financial bond must be posted by the executor or administrator, thus adding to the estate's expenses.
Notice of death must be published in a "Notice to Creditors" legal ad in a local newspaper, giving the creditors usually four to six months to file their claims. If the deceased left many debts, it can be an advantage to have a probate court proceeding because it cuts off creditor's claims after the time to file expires. But most decedents don't have substantial unpaid creditor problems. If there is not enough cash in the estate, then estate assets must be sold to pay the creditor claims approved by the Probate Court.
The Probate Court judge or referee will approve payment of creditor claims and hear any arguments by the executor or administrator against paying disputed claims. However, any federal estate taxes and income taxes due for the decedent's last income tax return must be paid first.
Real estate to be sold in probate sales can usually be listed for sale with a professional real estate agent to help obtain the highest sales price. Some realty agents specialize in probate listings and become experts in selling this type of property. Often they know more about such sales than do the probate attorneys.
But there are often probate sale complications, such as required approval of the heirs, or confirmation of the high bid by the probate judge. Many potential buyers won't even consider buying probate properties if these probate disadvantages occur.
After all the creditors and any estate and inheritance taxes have been paid, the Probate Court judge will order the remaining assets or cash distributed to the heirs (or to the state if no heirs were located).
I would suggest going to http://www.thecreativeinvestor.com/modules.php and learn more about probate investing.