How Does Probate Affect Your Loved Ones When Selling Real Estate?

Estate planning is one of the least favourite topics of conversation for many people. It’s normal to want to stay here forever with our loved ones, and no one enjoys thinking about what happens after we pass away.

Unfortunately, without a clear and uncontested Will, life can get tough for those left behind. Division of assets can be bitter and contentious, which only adds more stress to the grief they are already feeling. In this post, let’s talk about what probate means and how to handle the process when the time arises.

Estate Planning Terms to Understand

A deeper understanding of the terms you may encounter will help you navigate the world of estate planning and probate.

Estate: An estate consists of assets, such as cash or real estate. These assets can also be intangible, like an heirloom that has been in the family for years. It may not be worth much financially. Instead, it has sentimental value, and you’ll want to get crystal clear over who gets what.

Beneficiary: Your beneficiaries are those who will receive your property (or part of your property) after you pass away.

Estate Trustee: A person with the authority to manage or distribute assets after the Will-maker has passed away. This sounds similar to an Executor, except the Trustee is also responsible for managing your estate until probate is complete and the Will is settled.

Executor: The person responsible for carrying out the instructions outlined in the Will.

Affidavit: An affirmed or sworn legal statement that serves as evidence in court. In estate planning, the Trustee must attach several affidavits to the deceased’s original Will, such as an Affidavit of Execution of Will or Codicil and an Affidavit of Condition of Will or Codicil if the Will has been altered. 

Are you looking for more advice for selling a home in difficult circumstances? The posts below can help:

• When Is The Time Right To Sell Your Parents’ Home?
• My House Didn’t Sell. Now What Should I Do?
• How to Sell an Inherited Home 

Probate Defined

Probate happens when the courts either grant or confirm authority to an individual to act as the Estate Trustee. Any estate where the deceased owned tangible property and financial assets will generally go into probate. 

With a proper Will, the process should be fairly fast and seamless, where the court simply needs to give the green light for your assets to be divided as per your instructions.

The nightmares for your loved ones can begin when you don’t have a will, or there are loopholes that leave your wishes open to interpretation.

How Can You Help Your Loved Ones Navigate Probate?

The best thing you can do is work with an estate lawyer to ensure your Will is clear, up to date, and leaves nothing to be contested. If there are any gray areas, you never know when a “long lost relative” will show up to try to claim their due.

Even if the person does not have a case, they can still prolong the process and add stress that your loved ones do not need during this time. In addition, errors in filing or unanswered questions can cause unnecessary delays. 

Your lawyer will work with you to ensure that all of the bases are covered:

• Your Will accounts for all of your assets and clearly outlines how each item in your estate are divided, usually by percentage.
• You have clearly named an Estate Trustee or Executor.
• All affidavits and other necessary forms are attached to the Will for easy access.

You can also help your Estate Trustee manage your assets by listing out all of your banking and investment accounts in one place. 

How Long Does It Take to Get Probate?

If all goes well and your Will is uncontested, it can take anywhere from a few weeks to a few months for the courts to grant probate. The timing depends on a few factors, such as how busy the courts are and how long it takes for the Executor to file the paperwork and pay any outstanding debts from the estate. 

However, all bets are off when any complications arise. Ontario law states that the terms of any valid Will are enforced, and there are very few grounds for overturning it. However, that doesn’t prevent someone from trying.

A formal objection can delay the process for months or even years in the worst-case scenario. This is all the more reason to ensure all the details are correct. In addition, it doesn’t hurt to revisit your Will on occasion to ensure it still reflects your wishes.

Can You Speed Up the Probate Process?

Unfortunately, no one can persuade the courts to settle a case faster. All you can do is to ensure your Will is valid and that your Executor and Estate Trustee understand what is expected of them. 

An Executor usually has one year from the time of death to settle probate. However, submitting all the paperwork and applications correctly will help streamline probate as much as possible.

A little background knowledge about the real estate market can help everyone during challenging times. The related reading below may be helpful:

• What Is the Difference Between a Power of Attorney and Executor?
  What Is Going On In The Etobicoke Real Estate Market Today?
• Why Working with a Local Etobicoke Realtor® is More Critical than Ever

Can You Sell a House Before Probate?

This question can be complicated. Technically, you can list the house before probate. However, there is one small problem: The transaction cannot close until probate is finalized. You might be able to find a buyer who will be flexible in exchange for a lower price. However, not knowing when they can take possession of their new home is unappealing to most people. 

Though you could list the house, waiting until probate is granted is generally the best course of action. Once the dust settles and the Executor distributes all assets according to your wishes, your loved ones can truly begin the healing process. 

Do you need more guidance on how probate works or how to sell a home successfully in today’s market? Our experts are happy to help. Reach out to contact@thompsonsells.com or call 647-282-7653 to connect with us today.