Letting go – Options for liquidating Colorado estate property

Posted on January 12, 2012 by rharrist

Beth told me that her parents never threw away anything.   Each time they moved, they carried more and more boxes of stuff with them.  Things like old dishes, rugs, cabinet hardware, stuffed animals, bicycle parts, small appliances, telephones, cassette tapes, you name it.  Things they “might need one day”.

On the rare occasion that they needed something out of a storage box in the basement, they could never find it.

After Beth’s parents passed away, leaving her everything in the will, she assumed the expensive burden of moving all that stuff from place to place.  In all, there were over 500 small to large boxes.

For years, she could not bear to part with any of it.  Not one box.

One night, a couple of days before Thanksgiving, Beth had a dream that she was searching through all of those boxes for one very small item.   She needed a special spoon that her mom had always used for gravy at Thanksgiving dinner.  In the dream, her mom was telling her which box to look in.  After opening box after box she could not find the spoon. When she woke up, she knew it was time to let go.  Beth believed that the dream was her mom’s way of telling her to unload the burden she had carried for so long.

One of my clients, an Executor for an estate in Denver, left everything untouched in his parent’s house for over 5 years before he was ready to let go.

Sometimes it becomes necessary to sell estate assets to pay creditors of the estate.

Whenever you decide it’s the right time to let go of the estate property that you and your family don’t want, you have several options for liquidating assets.

The type, value and how quickly you need to sell estate property, will determine your options for liquidating estate assets.  As the probate Executor (Personal Representative in Colorado), you must exercise the same skill and care in administering the estate, as a person of good judgment, experience and knowledge would exercise in dealing with his or her own property.

If you’ve ever watched TV shows like Antiques Roadshow or Pawn Stars, you know there’s always someone who bought a treasure for cheap at an estate sale.  Almost always that happens because the Executor of the estate did not know the value of the item they sold.  Before selling real estate, antiques, collections, art, sports memorabilia, guns or other high value property, I highly recommend that you have the property appraised by an experienced professional.

Below are some of your options for liquidating estate assets by property type.

Real Estate (residential, commercial, land, income property)

  • Normal sale through an agent
  • For sale by owner
  • Auction
  • Transfer by sale to an heir
  • Gifting to an heir
  • Donating to a charity
  • Buyout (Investor)

Personal Property (household items, furniture, boats, automobiles, books, collections, etc.)

  • Estate Sale  (also known as a Tag Sale)
  • Gift
  • Donate
  • Auction
  • Buyout
  • Consignment
  • Disposal
  • Classified Advertising

In upcoming blog posts, I will be discussing the pros and cons of each estate liquidation option.

As always, please feel free to contact me and my knowledgeable staff at Great Estates, if you need help with valuation and liquidation of personal property or real estate in Colorado.

Best regards,
Russell

Content is general information only.  The information on GreatEstates.com does not constitute legal, financial, accounting, tax or other advice and should not be relied upon as such. You should obtain your own accounting, legal or accounting counsel for advice.  Statements or expressions of opinion on Russell’s blog herein are those of the author and not necessarily those of Great Estates, Inc., its employees, officers, affiliates or directors.

Share
Posted in Colorado Probate Personal Property, Colorado Probate Real Estate, General | Tagged , | Leave a comment

In Colorado, helping a pet after the owner dies

Posted on December 9, 2011 by rharrist

A few years ago, a man who lived outside of Colorado called me about selling his dad’s estate which was in probate.  He told me that his dad had passed away and left him a horse ranch in Elizabeth, Colorado.  I agreed to go out and take a look at the property, which was about 30 miles southeast of Denver.

When I pulled up to the property, I noticed two beautiful colts coming up to the fence near where I parked my Jeep.  As I walked up closer to them, I noticed that I could see ribs sticking out through their brown and white coats.  I noticed that the metal water trough was empty.  It dawned on me that these horses had no food or water.  As I looked around the property, I felt a sense of anxiety, since I didn’t know how long it had been since the horses had water or eaten.  Finally, I scrounged up some hay scraps and a bucket to haul some water over from the well.  There was an apple tree where some apples had fallen on the ground and I gave them some of those, too.

With everything else going on, somehow the care of these horses had fallen through the cracks.  It turned out that the decedent’s heir had no idea that animals were still on the property.  Ray and Rico are now doing very well on another ranch in Colorado, giving rides to kids who have never ridden before.

Once, I was in an estate property, when a gray and white Tabby cat showed up at the back door.  It was obvious she lived there because she was crying to get in.  The pet door had been closed off by someone who cleaned the house.

Unfortunately, we can’t take our pets with us.  You hear stories about a dog that won’t leave the owner’s grave site.  I’m not a Veterinarian nor do I have any scientific basis for my belief but based upon my experience with pets that I’ve seen left behind, I believe they grieve for their owners.  My grandma had a cat for several years.  Two months after my grandma died, her cat wouldn’t eat and died. I know it wasn’t from lack of care.

If a loved one dies in Colorado and you can’t take care of their pet, you have options for finding them a good home.  If there are no other relatives that can take care of the animal, explain the situation to a neighbor.  They may be able to take responsibility or know someone else who might.  If you’ve exhausted all options, there are several no-kill shelters in Colorado.  Here is a link to a partial list of Colorado no-kill shelters.

If you are not sure what to do with an animal left behind in Colorado because of the death of a loved one, please give us a call at 303-470-0053.  We provide assistance for our clients in finding homes for pets left behind.

Best regards,
Russell

Russell Harrist
Great Estates, Inc.
303-470-0053

We treat you Great at Great Estates !

 

Share
Posted in General | Leave a comment

The Family Home Sold And A Shocking Surprise Afterwards

Posted on June 27, 2011 by rharrist

A couple of years ago, I visited a client who told me about her uncle.  After he died, his heirs needed to sell his charming 1890′s Victorian home in Denver, the house they grew up in and had been in the family for over 70 years.

They needed to sell it quickly, to come up with enough money to pay some creditors of the estate.

Well, before the heirs could talk to a Realtor or an appraiser, they received a call from a local real estate investor who wanted to see the house. During the appoinment, the investor pointed out all of the problems with the house.  He assured them that $170,000 was the most they could expect to get, considering that the home needed to be repaired and updated. And he reminded them that if they sold the house to him, they wouldn’t have to pay a broker’s commission.

So, they accepted his cash offer of $170,000, with a fast closing in two weeks.

It was the day of closing. Everyone showed up at the title company, including the executor of the estate and the investor.  All papers were signed and the house was transferred to the investor.

After leaving the office, the executor realized he had forgotten his phone in the closing room.  When he went back inside to get his phone, he noticed that the investor was there having what appeared to be another closing.

He confronted the investor, who told him that he had already found another buyer for the property and that they were indeed having a closing.  At that point, there was nothing he could do, so he left.

Two weeks went by and the executor decided to check with the Denver Clerk & Recorder to make sure the deed had been recorded. When he called the recorders office, they told him that in fact, two deeds had been recorded on the same day. One sale for $170,000 and another sale for $247,000.

Turns out, the investor had made $77,000 profit in one day, without lifting one finger to make one repair to the house.

This type of investor is known as a “wholesaler”.  Unlike a fix & flip investor, they try to negotiate the lowest price possible, then immediately sell the property to another party, without adding any value whatsoever.  Some are vultures, who swoop in to prey on uninformed, desparate people in desparate situations.  Many of them have convinced themselves that they are actually helping the people they prey upon. Beware, these people have no conscience and will take you for every penny.

Always get an Appraisal or Broker Price Opinion before accepting any offer on a property.

Please feel free to contact me personally if you need an appraisal or broker price opinion. As a Colorado Certified Residential Appraiser and Licensed Broker with over 20 years real estate experience, I can determine the true market value of your property as-is and as-repaired.  There is no charge for a Broker Price Opinion.  A full appraisal is typically about $350.

Best regards,
Russell
Great Estates, Inc.
(303) 470-0053

“We treat you GREAT at Great Estates”

Content is general information only.  The information on GreatEstates.com does not constitute legal, financial, accounting, tax or other advice and should not be relied upon as such. You should obtain your own accounting, legal or accounting counsel for advice.

Statements or expressions of opinion on Russell’s blog herein are those of the author and not necessarily those of GreatEstates, Inc., its employees, officers, affiliates or directors.

Share
Posted in Colorado Probate Real Estate | Tagged , , , , , , | Leave a comment

The “Favorite” Granddaughter

Posted on June 27, 2011 by rharrist

This story comes from my friend’s stepsister.

It seems Mary, the birth mother of my friend’s stepsister died a few years ago after a long battle with Alzheimer’s disease.

Rebecca, Mary’s first granddaughter, was the only other relative living near her in Denver, Colorado. The family, who were all spread apart in different cities, appreciated that Rebecca would occasionally check on Mary while she had full time care in her home.

After Mary passed away, Cynthia (the Executor) and the other three heirs who lived out of state, decided that it would be easiest if Rebecca took care of the house and other estate property, just until they could have an estate sale and then sell the house.

Everything was going well. After a couple of weeks, probate was opened and Rebecca had agreed to handle the estate sale.

Then all of the sudden, no one could reach Rebecca.

To everyone’s surprise, it was as if Rebecca had disappeared off the face of the earth. Rebecca wouldn’t answer her phone or return messages. Finally, Cynthia realized that she had to ask her boss for some time off, so she could catch a flight from Chicago to Denver. She had to try and find Rebecca and also deal with the estate property.

Cythia rented a car. As she pulled up to the house, she almost didn’t recognize it. Weeds in the front yard were almost 3 feet high. There were flyers all over the front door. As she walked up onto the porch, she saw a notice posted on the front door from the City and County of Denver. The notice stated that if the weeds were not cut, the city would have them cut and there would be a fine.

As let herself into the house through the unlocked front door, she noticed that the antique 1770′s English grandfather clock, which had been a prominent piece in the entry for years, was gone.

As Cynthia took an inventory of the house contents, she realized that there were several other missing heirlooms and jewelry.

Cynthia felt betrayed by Rebecca.

As it turned out, Rebecca had a bad drug abuse problem. She would disappear with her boyfriend, who was a career criminal, for days a time.  According to the neighbors, they had even held an all night party in the house!

I recommend that all property be secured, immediately after death. That means moving all valuable property to a secured location, like a locked storage facility or safe deposit box. For homes, locks should be changed immediately and all windows and doors secured.  You never know who might have a copy of the key.

Our Great Estates’ Probate Estate Protection, Appraisal & Liquidation Plan includes securing real estate, re-keying doors, maintaining the lawn, snow removal and checking on the property weekly.  Contact us to set up a free consultation.  There is never any pressure or obligation.

Best regards,
Russell
Great Estates, Inc.
(303) 470-0053

“We treat you GREAT at Great Estates”

Content is general information only.  The information on GreatEstates.com does not constitute legal, financial, accounting, tax or other advice and should not be relied upon as such. You should obtain your own accounting, legal or accounting counsel for advice.
Statements or expressions of opinion on Russell’s blog herein are those of the author and not necessarily those of Great Estates, Inc., its employees, officers, affiliates or directors.

Share
Posted in General | Tagged , , , | Leave a comment

Securing & Protecting Estate Property For Colorado Personal Representatives (Executors)

Posted on May 29, 2011 by rharrist

After you have located all of the estate’s assets, you must then secure and manage them.

As the Personal Representative, you must exercise the same skill and care in administering the estate, as a person of good judgment, experience and knowledge would exercise in dealing with his or her own property.

If real property is involved, that means you could ultimately be held liable for failure to properly secure and manage the property, including failure to pay property taxes, maintain insurance, make mortgage payments, or even failure to maintain the property in good repair.

In a minute, I’ll give you some simple steps that you can take to secure, then protect and preserve the estate’s assets.

But first, ask yourself this question.

Who can I trust?

I could tell you stories of missing wills, trusted neighbors breaking and entering, the sister in-law who grabbed the box of gold coins from the upstairs closet, disappearing jewelry.  On and on, there are stories of betrayal.  Friends, neighbors and relatives, who were trusted by a Personal Representative, just like you.

Please listen to me!  When it comes to the estate’s assets, you cannot, you must not trust friends, relatives or neighbors! You must be the guardian!

You might say to yourself, They wouldn’t do that to me!  Well before you say that, think about how you will explain to your brother or sister about how it’s not your fault that Mom’s good silver and Dad’s Mickey Mantle baseball card collection have just gone missing.

The bottom line is, you have to accept the responsibility and take charge right now, even if you don’t feel like it.  Even if you’re afraid of hurting some feelings.  I’m not saying that you need to be rude.  I’m saying that everyone must understand your role and that you have a job to do.

Be firm and trust no one.

Enough said on good friends, good relatives and good neighbors.

I’ll save my rambling on real estate predators for another post.

Finally, here are some common sense things you can do to secure, protect and preserve the estate’s assets:

Personal Estate Property Security:

  • Immediately secure the original will and take it to the attorney.
  • Immediately inventory and photograph all personal property and real estate.
    Tip: Date Stamp, Email or Upload the photos to a backup service.
  • Remove valuable personal property from vacant properties and store in a safe place.
    Tip: Rent a storage unit if you don’t have room or live outside Colorado.
    Tip: Don’t throw or give anything away until you know its value.
    Tip: If you’re not sure if something’s valuable, contact us and we’ll tell you.

Real Estate Property Security, Preservation & Maintenance:

Protection from criminals (might include neighbors or relatives)

  • Secure doors, locks & windows
  • Have a locksmith re-key all door locks (you never know who might have a key copy)
  • Alarm System: arm & notify alarm service
  • Inspect property on a regular basis (weekly minimum)

Protection from elements

  • Secure windows & doors
  • Turn off hot water heater
  • Turn off water main inside house
  • Winterize plumbing system (in Colorado October-April)
  • Critters (have critters removed and seal openings)
  • Maintain lawn & remove snow from driveway and walks

Protection from financial loss

  • Make the mortgage payment
  • Pay due property taxes
  • Insurance (notify the insurance company & ask about vacant property policy)
  • Follow rules and ordinances to avoid fines from HOA & local governments
  • Get a probate real estate appraisal or broker price opinion before selling or deeding property

If you need help managing some of the property issues, please feel free to call me or use our contact form.  I’m always happy to help.

If you list your property for sale with us, lawn maintenance, snow removal, weekly property inspections and plumbing winterization is included as part of our services.

Best regards,
Russell
Great Estates, Inc.
(303) 470-0053

“We treat you GREAT at Great Estates”

Content is general information only.  The information on GreatEstates.com does not constitute legal, financial, accounting, tax or other advice and should not be relied upon as such. You should obtain your own accounting, legal or accounting counsel for advice.
Statements or expressions of opinion on Russell’s blog herein are those of the author and not necessarily those of  Great Estates, Inc., its employees, officers, affiliates or directors.

Share
Posted in Colorado Probate Personal Property, Colorado Probate Real Estate, General | Leave a comment

Transfer of a Deceased Person’s Real Estate in Colorado

Posted on May 15, 2011 by rharrist

5 ways Colorado real estate is typically transferred upon the death of a person…

Personal Representative’s Deed

  • Property is conveyed by the Personal Representative, who has been appointed by the court to administer the deceased’s estate.
  • The deed is typically completed by the attorney who is supervising administration of the estate.  A title company cannot complete the deed.  If you don’t have a probate attorney, we can refer one to you, who can complete the deed for a cost somewhere around $100.
  • Similar to a bargain and sale deed, whereby title is conveyed but no title warranties are conveyed to the buyer.

Trustee’s Deed

  • The Trustee of the deceased person’s trust conveys the property.
  • The deed is typically completed by the attorney who is supervising administration of the estate.
  • Similar to a bargain and sale deed, whereby title is conveyed but no title warranties are conveyed to the buyer.

Conservator’s Deed

  • Property is conveyed by the Conservator, who is a person selected by the probate court to manage the assets of a protected person who, because of health, age or intellect, is incapable of managing their own affairs.
  • Similar to a bargain and sale deed, whereby title is conveyed but no title warranties are conveyed to the buyer.

Beneficiary Deed

  • In Colorado, beneficiary deed i recorded by the owner prior to death.
  • The deed is typically completed by an estate planning attorney.
  • Used as a tool to avoid real estate going through probate.

Joint Tenancy

  • Property transfers to the other joint owner upon death, without going through probate.
  • A death certificate is recorded in the county where the property is located.
  • How do you know if the property is held in joint tenancy?  The deed states, in joint tenancy, or joint tenants.

You should always speak to your estate planning attorney about what type of deed (if any) is necessary to transfer real property.

For questions about probate real estate property value or real estate marketing, please feel free to contact me personally.

Best regards,
Russell
(303) 470-0053

Content is general information only.  The information on GreatEstates.com does not constitute legal, financial, accounting, tax or other advice and should not be relied upon as such. You should obtain your own accounting, legal or accounting counsel for advice.

Statements or expressions of opinion on Russell’s blog herein are those of the author and not necessarily those of Great Estates, Inc., its employees, officers, affiliates or directors.

Share
Posted in Colorado Probate Real Estate | Tagged , , , , | Leave a comment

Oh by the way, mom perished in a fire while smoking in bed…

Posted on May 8, 2011 by rharrist

SmokerWe were sitting at the closing table.  My client Susan, was the buying a cute ranch style home in Harvey Park, a neighborhood in Southwest Denver, with small homes built in the 1950′s.  Unlike a lot of homes in this neighborhood, Susan liked this house because it had just been completely renovated.  New drywall, new wood flooring, new electrical system, you name it.  Everything on the interior was like new.

The seller, David, walked into the closing.  David was the Personal Representative (Executor) for his mom Mary’s estate, currently in Denver probate court.  Mary had bought the home when it was newly built in 1952.  David sat down and we proceeded to start signing papers to close this transaction.

I was commenting out loud to Susan and David about how nicely remodeled the house was.  That’s when David made the comment, yes we had to renovate everything because there was a fire in the bedroom, where mom passed away, after she fell asleep smoking in bed.

I looked over at Susan as I felt my face turning red.  This had not been disclosed to us until just this moment.

I asked Susan to step outside with me to discuss this news.  Susan had previously hired an inspector to look at the house and everything had checked out ok.  I was concerned about how Susan felt about what had happened, especially since she would be sleeping in the same room where the fire happened.

It turned out that Susan had no problem going through with the purchase of the house.  Not everyone would have been ok with the fact that someone had recently passed away in the home.

Should David have previously disclosed the fact that his mom passed away in the house fire?

There is a two part answer.

In Colorado, a seller is not required to disclose that a person has died in a home.  However, sellers must disclose any significant problems they have experienced with their homes and what they did to remedy the problems, if anything.

David should have disclosed the past fire and major work completed on the property.  The disclosure would have been done on the Colorado Seller’s Property Disclosure form.

If you are concerned about buying a home where someone died, you and your agent can do some research:

  • The seller’s agent can request permission from the seller to disclose.
  • Talk to neighbors but be careful of rumors.
  • Look at police reports.
  • Research old newspapers for stories & obituaries
  • Research Colorado death records

If the house is being sold by an estate, there is a better chance that someone died in the house.

If you are a Personal Representative of an estate and you have not lived in the property, you should consult your probate attorney before completing the Colorado Seller’s Property Disclosure form.

How does a death in the house affect its value?  I’ll address that in another post.

Best regards,
Russell

This story is real but the names have been changed.  The information on GreatEstates.com does not constitute legal, financial, accounting, tax or other advice and should not be relied upon as such. You should obtain your own accounting, legal or accounting counsel for advice.

Statements or expressions of opinion on Russell’s blog herein are those of the author and not necessarily those of  Great Estates, Inc., its employees, officers, affiliates or directors.

Share
Posted in Colorado Probate Real Estate | Leave a comment

Selling Colorado Probate Real Estate on a Short Sale

Posted on May 1, 2011 by rharrist

Jerry passed away 5 years ago.  After 37 years of marriage to Emma, everything they owned together transferred over to Emma, including their small house in southeast Denver, Colorado.  Without Jerry’s income, Emma was having trouble keeping up with all of the bills, living expenses, property taxes and everything else.

One day someone talked Emma into getting a second mortgage.  It seemed like a good idea at the time.  She would get the money to take care of her expenses while getting to stay in the house. Back then, the Denver real estate market was good.  Property values were moving up.

Fast forward to present day.

Emma passed away last month, leaving her probate estate to be handled by Personal Representative, Lucille, the oldest daughter.

Lucille contacted me to complete a Broker Price Opinion on the house.  I determined that the house was worth about $55,000 less than what was owed on both mortgages.

Lucille and her sisters were shocked.  Emma only had an IRA of $25,000 and some small CD’s.  That obviously would not cover the $55,000 owed on the mortgages.  Still, there was no way they wanted to let mom’s house, the house they grew up in, go into foreclosure.

In the past, most probate properties were owned free and clear or had very small mortgage balances.  Today we’re seeing more and more, where more is owed on a property than what it will sell for.

I suggested that with their estate attorney’s approval and guidance, we try a short sale.  If you’re not aware, a short sale is when the mortgage company agrees to take less than what’s owed on the mortgage, so that the property can be sold.

Here are some considerations when selling probate real estate using a short sale process:

  • The estate attorney(s) must be consulted and involved throughout the process.
  • An accountant must be consulted about the tax consequences of a short sale.
  • Other alternatives should first be considered, like keeping the property or a deed in lieu.
  • The property must still sell at or near current market value.
  • The short sale is usually lengthy and it will take patience from the seller and buyer.

You should consider working with experienced professionals who can help you see all of your options.  A short sale is one of the last resorts to avoid foreclosure.   If you are in Colorado and find yourself in a similar situation to Lucille, please contact me and I’ll be happy to do my best to help you, or refer you to someone who can.

Best regards,

Russell

This story is real but the names have been changed.  The information on GreatEstates.com does not constitute legal, financial, accounting, tax or other advice and should not be relied upon as such. You should obtain your own accounting, legal or accounting counsel for advice.

Statements or expressions of opinion on Russell’s blog herein are those of the author and not necessarily those of Great Estates, Inc., its employees, officers, affiliates or directors.

Share
Posted in Colorado Probate Real Estate | Tagged , , | Leave a comment

Welcome!

Posted on April 29, 2011 by rharrist
Russell Harrist

Russell Harrist

Welcome to the Colorado Probate Estate Property Blog!

“In this blog, I will discuss issues and give advice, that will hopefully help estate Trustees and Personal Representatives to better deal with their probate estate’s personal property and real estate.”

Best regards,
Russell

Over the years, founder of Great Estates, Inc. , Russell Harrist has helped Colorado estate Personal Representatives and Trustees to value, sell or donate their property.

Russell has been a real estate broker in Colorado since 1988 and a State Certified Residential Appraiser since 2002.  Please visit the website GreatEstates.com.

For comments and questions, please contact Russell Harrist directly at Russell@GreatEstates.com .

Share
Posted in General | Leave a comment