When someone passes away, their assets are distributed after the payment of debts and expenses. In Louisiana, this process is called Succession (probate in other states). This process can be complex when there is real estate involved but here are a few basic things to know if you need to sell succession property.
Types of Succession
In Louisiana, a succession will either be Administered or Unadministered. If Unadministered, it will either be a small succession or simple possession. Let’s review the details behind each one.
If a person dies with an estate value of $125,000 or less, the successors may be able to use a small succession to sell their house fast.
There is no judicial opening of the succession. The heirs may be placed into possession by affidavit. The affidavit is shown to banks as proof of ownership so heirs can sell their inherited home. This serves as proof of chain of title for real estate. It can be used if:
- A person living in Louisiana whose heirs are his descendants, ascendants, brothers or sisters of their descendants, or the surviving spouse; or
- A person living outside of Louisiana whose will has been probated by court order of another state.
This option is not available for a person who lived in Louisiana with a will or for a person who lived outside Louisiana without a will.
Successions that do not satisfy the criteria for a small succession will be a regular simple possession or an administered.
Simple possession occurs typically when no estate taxes are due, no creditors demand an administration, and all heirs/legatees accept the succession. If the deceased died with a will, a petition is filed asking the judge to probate the will.
- A list of all of the assets and liabilities is filed and any outstanding debts are settled.
- A petition is filed asking the Judge to place the successors into possession of their respective portions of the estate.
- The Judge signs the Judgment of Possession which places the heirs into possession so they can sign a purchase agreement to sell a house.
All of the documents may be filed with the Parish on the same day, and the succession is opened and closed in a day.
Successions that do not qualify for a small or simple possession must be administered. Administered is the most complex type of Succession. This requires a court appointed representative. If there is a will, the representative is called an executor (or executrix if female). If there is not a will, the representative is known as an administrator (or administratrix if female).
Administered Successions are required when:
- The Will may not be valid
- Any of the heirs cannot be located
- There are extensive assets and/or liabilities of the estate
- There is a judgment or lien against any of the heirs that would act as a lien against the property
- There are any major disputes regarding the estate
- Any other complicating factors
After all issues are resolved, the representative prepares and presents documents to the court. If all involved parties agree, the judge will approve it. Only the succession representative needs to appear at the closing. The proceeds are not paid to the heirs at closing. They are paid to the succession and the representative will divide the proceeds.
How To Sell Succession Property and Real Estate
People in Louisiana sometimes become accidental property owners. They never planned on owning the real estate. This property can become a burden if your life is too busy to deal with it. Also, it’s most likely an old house and you don’t have the cash to make required repairs.
The process to sell an inherited house is basically the same as selling any other home. However, there are some key differences to keep in mind. The house condition may require updates and repairs. These may not be immediately obvious when viewing the home. Here are the steps needed:
If the heirs all agree to sell the house before the estate goes through succession, the title attorney can help do it as part of the closing. You won’t have to pay for the cost of the succession upfront because you can use the closing proceeds to pay for it.
Clean Out Personal Belongings
You’ll need to clean everything out of the house. This can be a draining experience if the deceased owner lived there for a long time. It can be also be emotional for family members. If you get stuck, we can buy the house with anything you don’t want left behind. We’ll help donate what we can to charity and trash the rest.
Contact A Realtor Or Company That Buys Houses
Some people are happy to list their house with an agent and wait for the right buyer to come along. Others would prefer to sell their house fast to a company that buys houses for cash.
Fairview Home Buyers can help. We are real estate investors and buy houses for cash in the New Orleans area. We listen to your needs and can help you in the best way possible. We will:
- Help you deal with the process quick and easy
- Respect your privacy
- Handle the closing whenever you are ready
We will help support you to sell succession property so that you can get your own life back to normal. Contact us today to get a fair cash offer.