![Don't Be Left in the Dark: Uncover the Secrets of Inherited Real Property [Living Trusts, Probate]](https://i.ytimg.com/vi/B3LrxsPCq0Y/maxresdefault.jpg)
In this video I walk you through 3 different possibilities for inheritance of real property in Santa Clara County CA: (1) inheriting through a living trust; (2) inheriting under a “low value” exception to probate; and (3) the probate process.
The most straightforward and quickest way to inherit real property is with a living trust (assuming the property owner had set one up). Usually there is a trust document which specifies who the successor trustee will be upon the death of the initial trustee. When the initial trustee dies, the successor trustee can file a Preliminary Change of Ownership Report in the county where the property is located (assuming it’s in California). Then the successor trustee is free to hire a real estate agent to help sell the property.
The “low value” exception category has procedures for properties at different valuation thresholds: (i) for properties with a value under $61,500, an “Affidavit re Real Property of Small Value” is filed in court; (ii) for properties with a value between $61,500 and $184,500, a “Petition to Determine Succession to Real Property” is filed in court. Both of these procedures have waiting periods from the date of death, so it can take a few months for the heirs to sell the property. However, these exceptions are likely to be less costly than going through the probate process.
For properties over $184,500 in value and that are not held by a living trust, the heirs will usually have to go through the probate process. There are 2 main types of probate: (i) Full Authority – in this case the personal representative of the estate is granted full authority by the probate court to sell or otherwise dispose of the property. The process typically takes about 6 months and can cost several thousand dollars depending on the value of the estate. (ii) Limited Authority – in this case the personal representative of the estate is granted limited authority to sell the property with court approvals needed depending on the sale price and the appraised value. The process typically takes about 12 months and is about the same cost as a full authority probate.
If you have any questions about these different ways to inherit real property or need a referral to an estate planning attorney, feel free to book a call here:
https://calendly.com/siliconvalleyliving101/30min