Managing the sale of a loved one’s house after they have passed is one of the most challenging tasks any of us will ever face. If someone you care about has entrusted you as the Executor of their Will (also known as an Estate Trustee), it is something you could need to handle at some point, hopefully far into the future.
If you are thinking of asking a family member to take on this responsibility, there are many ways you can help them prepare when that time comes. Today, we’ll cover what you need to know about handling an estate sale.
An unbiased assessment is a good first step toward selling a loved one’s home. Book your complimentary evaluation with our team right here.
The Value of Planning Ahead
An estate planning session is not the most enjoyable family event you will experience. Nevertheless, it is valuable whatever side of the equation you are on. If you’re the Executor for someone else, a clear understanding of your loved one’s wishes will help you carry out all of the tasks involved. If you’re putting your own affairs in order, you can take comfort that the steps you perform now will help to ease the grief of your friends and family after you are gone.
Having an updated and valid Will is the foundation of estate planning. Without it, the Executor will have to apply to the courts to be able to sell the family home. Probate will take longer, and the potential for conflict is far greater. Making your wishes known well in advance will go a long way toward keeping the peace while settling the estate.
Belongings with monetary value will need to be tallied and accounted for. It will help to have a list of bank and investment account numbers handy, as well as the names of the financial institutions holding them. Any insurance policies, receipts for large purchases, and real estate titles should also be in one place and easily accessible for the Executor.
Sentimental items can be simpler or more complicated to deal with, depending on how much emotional attachment family members may have. A conversation about who should get what now will help to prevent hurt feelings later. You might decide to include your most treasured items in your Will, even if they only have minimal financial value.
Are you or a loved one preparing to downsize? The posts below can help streamline the process:
- Is it Better to Downsize Before Retirement?
- Exploring Reverse Mortgages: Are They Worth It?
- 9 Questions to Ask Yourself Before Downsizing
A Note on Capital Gains
Capital gains have been a contentious subject lately, and for many good reasons. Fortunately, they may not apply in your situation unless the house in question was an income property or vacation home. A primary residence is exempt, and Canada does not have an inheritance tax, at least at the time of this writing.
If the house is an income property, the Executor will need to clear capital gains from the estate upon closing the transaction. It’s one of the first steps before divvying up the proceeds to the beneficiaries.
Capital gains could also be a factor if a beneficiary already owns a home. If the value of the house rises after taking possession, a portion of the increase would be subject to capital gains if the owner decides to sell.
The Importance of Professional Guidance
Working with a full-service real estate team that understands the estate sale process will help you move forward with as little stress as possible. You’ll likely also need the assistance of a lawyer to guide you through probate and answer any questions about the Will.
Once the courts grant probate, the Executor can begin distributing any assets according to the Will. If the deceased owned real estate, this could also mean selling the family home. Preparing the house for the market is often the tricky part of an estate sale.
Each room will need to be sorted and decluttered. This task is challenging enough with a regular real estate sale. Going through a loved one’s belongings is even more difficult. If you become too overwhelmed, you may want to call in a professional cleaning service. You can be there to supervise and ensure that nothing with sentimental value gets lost, but having an unbiased third party around can help you stay objective.
Reputable contractors and tradespeople can also get the house ready to show quickly. If you’re counting on a fast sale so you can distribute the assets and close off the estate, trusted experts will be essential. This is yet another benefit of working with a local real estate team. You get up-to-date guidance for the current market, plus you’ll have a built-in network with a single contact.
Estate sales are similar to standard real estate transactions in many ways. With that in mind, here are some other posts you may find helpful:
- 5 Common Mistakes Home Sellers Make
- Unlocking the Keys to a Successful Home Sale in Toronto: Insider Tips and Tricks
- Home Renovations That Add Lasting Value
Staging for an Estate Sale
Time is often of the essence in preparing a house for an estate sale, and it can be an emotional experience. However, you owe it to your loved one and their beneficiaries to make the most of it. The last thing you want is for buyers to sense that the sale is not a happy one. If that happens, they may feel more empowered to negotiate. Or they might feel put off and move on to the next listing.
You may not have the resources for a full remodel, but you’ll want to do anything you can to make the home appealing to potential buyers. Cleaning and decluttering provide the foundation. From there, a few minor repairs like a fresh coat of paint can go a long way to creating a bright and cheery atmosphere.
Lastly, a few well-chosen pieces of furniture and decor will help buyers envision themselves living there. It can be difficult to let go of a house that has been in your family for many years. That said, you can take comfort in knowing it will become a cherished home for someone else.
Do you need a higher level of support to help you get through an estate sale? Our West Toronto real estate agents are standing by. Connect with us today at 416-769-3437 or email info@sidorovainwood.com with any questions.
