Posted by Jimmy on April 27, 2007 at 07:17:20:
this is how the deal would work in California, where I practiced. I suspect you will encounter similar concepts wherever you are. Do talk to an atty.
If your PR had full powers under the IAEA (check first page of petition opening probate), then the PR can sell the property without court supervision. but the PR will have to give a “notice of proposed sale” to the other interested parties. and those interested parties CAN object to this deal. and if they do, your sale is off, and your PR gets to 'splain herself to the Judge. and remember, before this sale can be done, the probate referee would have done a appraisal of the property, and filed it with the court and interested parties.
Assuming there are no other interested parties, or assuming the are asleep, or assuming they do not care about the bargain sale, you might have another problem. In CA, if a PR wants to sell a property for substantially less than the appraised value, there may be a requirement to get a re-appraisal. I have done this before to protect my client/PR. the particular property dropped in value between 2004 and 2006, an i had lots of beneficiaries at each others’ throats.
on more problem. the atty for the PR SHOULD, IF HE IS AWAKE, kill your deal. Th PR had a fiduciary duty to the Estate and the other beneficiaries to protect the estate assets. Intentionally selling an asset for half of its value is a clear-cut violation of this duty, and can easily get the PR removed and sued.
so how do you do it? make your deal with the beneficiaries who will get the property, and consummate the sale after the property is distributed out of the estate.