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Under Nevada probate laws, a person’s heirs do not automatically inherit their house after their death. These same laws also apply to people’s heirs in many other states.
Instead, a person’s house must go through probate, like many other possessions following their passing. The executor of this person’s will must move through legal proceedings in probate court before passing along any estate assets to beneficiaries.
So, what happens to a house during probate as those who are set to receive it wait for the process to end? If you’re preparing to go through the probate process after a loved one’s death, you should know the answer to this question.
Find out what will happen to their house during this process below.
A House Typically Becomes a Part of a Person’s Estate
When a person dies, they typically leave behind at least some assets. These often include cash, a house, vehicles, and other items that they accumulated throughout their life.
In many cases, a person will outline who they would like to receive these assets. For example, they might decide to leave a house behind for their children so they can choose whether to keep it in the family or sell it based on their needs.
Whatever the case, a house is usually lumped together with the rest of a person’s assets after their death. These assets must go through the probate process to ensure they’re distributed to the right heirs and within the limits of a state’s probate laws.
If assets don’t go through probate, it can cause complications later. For example, heirs may struggle to gain rightful access to the assets left behind by loved ones.
An Executor Manages a Person’s Estate
During the probate process, an executor is appointed to oversee a person’s assets. Often, a person will handpick an executor while creating their will and listing their name and final wishes.
However, a probate court may appoint an executor if a person didn’t do this before their death. In a case like this, letters of testamentary are drawn up to indicate who will serve as the executor of a person’s will, thus ensuring the probate process goes smoothly.
Either way, an executor manages a person’s estate during probate. They will need to:
- Inventory a person’s assets and have them appraised to indicate their value
- List a person’s debts and figure out ways to repay them before distributing assets
- Distribute a person’s assets according to their final wishes and the probate laws in their state
Make sure your family knows how the probate process works before you dive headfirst into it. You must understand how it will play out to ensure you complete all essential steps and avoid unnecessary delays.
An Executor Maintains a Person’s House
Some states, including Nevada, have simplified probate processes that take little time. Others have much longer processes that can last months and, in rare cases, even years. In these instances, people wonder, “What happens to a house during probate?” as they wait not so patiently.
While the probate process occurs, an executor ultimately maintains a person’s house. They’ll have to do this by physically caring for the yard outside the home and keeping its interior clean.
An executor must also handle financial issues related to a person’s house, such as paying property taxes and other bills. They can use money from a person’s estate to cover these costs. However, they should keep accurate records of their expenses to avoid any allegations of wrongdoing made by a person’s heirs.
In some situations, an executor can even allow a person’s heirs to move into and begin living in a house left behind for them. However, they’ll still have to maintain it properly and prevent it from falling into disarray.
If an executor has to sell a person’s house to cover their unpaid debts, they’ll also have to take on this role while overseeing their estate. The right person needs to play the part of an executor in these types of cases since they can quickly become more complicated than a person may have bargained for.
An Executor Distributes a Person’s House to the Rightful Heirs
As long as everything goes according to plan during the probate process, an executor can complete a title transfer to give ownership of a person’s house to their heirs. The heirs will then decide what to do with the house next.
Some heirs will ultimately keep inherited houses within their families. Others will part ways with homes by selling them and collecting the proceeds from their sales.
Once all of a person’s assets have been distributed after the probate process, an executor can wipe their hands clean. They won’t have to worry about settling familial disputes over these assets, prioritize paying property taxes, or cover any other costs associated with owning a home.
Be Sure Your Family Knows What Happens to a House During Probate
Figuring out what happens to a house during probate is just one of the things families wonder about following a loved one’s death. They also ask, “Can I take out a home equity loan on inherited property?”
Since families normally have to wait to inherit money and other assets until after probate, they can sometimes use the cash infusions these loans provide. Thankfully, Rockpoint Probate Funding is here to help you secure the cash you need until the probate process ends.
Call us at (888) 263-8588 to learn how our probate loans work.
