Probate Presentation to Realtors

Later today I am speaking to a group of Realtors at the Lyon Real Estate office in Folsom.  I will be giving them a refresher course on transferring and selling real estate after death. Here’s my outline:

LYON REAL ESTATE – Folsom, CA

February 27, 2013

By: John B. Palley, Esq.

I.       Introduction

  1.   Johnson, Fort, Meissner, Joseph & Palley
    1. Since 1979
    2. 8 attorneys
    3. Estate planning, probate, business, real estate, and related litigation
    4. Offices in Sacramento and Roseville – Practice throughout California
    5. John Palley is a Certified Specialist in Estate Planning, Trust and Probate
    6. Brief refresher on Estate Planning for Real Estate
    7. Real Estate sales in probate administration cases
    8. Real Estate sales in trust administration cases
    9. Some thoughts on pursuing probate and trust listings

B.           Topics today (all related to selling real estate I hope):

 

II. Brief refresher on Estate Planning for Real Estate

  1. Transfer by deeds before death

1.     Tax basis problems

2.     Creditor problems

3.     Out of order death problems

  1. Transfer by deeds after death (“Joint tenancy” and CP with ROS)
  2. Wills – Simple but some type of probate required when there is real estate
  3. Living Trusts – Great solution for most people that own real estate in CA
  4. Other Estate Planning (LLC’s, FLPs and QPRTs)
  5. Don’t forget about the property tax issues
  6. Don’t forget title companies make the law but are not perfect

 

III.    Real Estate sales in Probate Administration

  1.   Different types of probate if property worth less than $150,000
  2.   Probate is a formal process  that takes 7 months minimum
  3.   The probate code (PC) and the Judge create a formal process
  4.   The PC lays out strict guidelines for collecting assets & dealing with creditors
  5.   When can you sell property in probate?
  6.   Listing Agreements – Probate form recommended but not required – 90 day
  7.   Probate Sales Form
  8.   Probate Advisory Form
  9.   Short Sales in Probate?  (Protecting other estate assets)
  10.   IAEA v. Non-IAEA (PC 10452 v. PC 10309)
  11.   Selling Upside Down Houses in Probate – PC 10360 et seq.
  12.   Notice of Proposed Action and/or Court Confirmation (waiver is possible)
  13.   Document all marketing and pricing work very carefully
  14.   Standard commissions
  15.   Disclosures that are not provided by PR or trustee: The Transfer Disclosure Statement, The Seller’s Questionnaire, Earthquake Hazard Booklet, Earthquake Hazard Questionnaire, the signature on the Natural Hazard Disclosure but the report needs to be provided, and Smoke Detector Compliance.
  16.   Disclosure that are required by PR or trustee: Lead Based Disclosure, Data Base Disclosure (Megan’s Law), Water Heater Disclosure and strapping, and disclosing anything that is personally known by the representative.

 

IV.     Real Estate Sales in Trust Administration

  1.    Overall a trust administration is much simpler than a probate but….
  2.    Probate code says “may” instead of “shall” for trust administration
  3.    Court not involved unless someone gets them involved
  4.    Simpler than probate but lots of traps (Notice plus specific gifts)
  5.    Duty to inform – Probate Code 16060
  6.    When can you sell a house owned by a trust?
  7.    Listing Agreements – Probate form recommended but not required – No max
  8.   Trust Advisory – CAR Form TA
  9.    Short Sales in Trusts?  (Protecting other trust assets)
  10.    Selling Upside Down Houses – Convert to probate?
  11.    Disclosures (still must disclose known material facts)
  12.    Notice of Proposed Action and/or Court Confirmation – 45 day – PC 16500
  13.    Document all marketing and pricing work very carefully
  14.    Standard commissions
  15.    Crossover between trust administration and probate when there is a trust but

house is not titled in trust at death – “Heggstad” petition

 

V. Pursing Probate and Trust Listings

  1. Probate Court records are public (some Courts are relatively accessible on-line)
  2. Lots of low ball offers by investors
  3. Contact attorney or contact the individual?
  4. Make it easy if you contact attorney (Case Name)
  5. Customer service is still what wins you clients

 

VI.   Conclusion

  1. Working with a qualified probate attorney will make you look good
  2. Title companies are the actual makers of law!
  3. Contact me with any questions!

 

John B. Palley, Esq.

JOHNSON, FORT, MEISSNER, JOSEPH & PALLEY

1555 River Park Drive, Suite 108   Sacramento, CA95815

916-920-5983 (Ph)      916-920-9379 (fax)

palley@lawofficeinc.com

www.californiaprobate.info

 

THINGS A PROBATE/TRUST LAWYER LIKES TO SEE IN A

REAL PROPERTY SALE

 

 

 

1)        Market Analysis Report in writing

2)        Probate Listing Agreement

3)        Marketing Plan

4)        Keep detailed log of all marketing and offers

5)        Use of Probate Sales forms

6)        Fax/email agreement once fully signed

7)        Title company information to attorney

8)        At least 20 (or 45 – trust) days for escrow unless discussed beforehand

9)        Final closing statement

10)  Plus, everything you would do for a “regular” client!

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Free Cemetery Burial in Sacramento

I know you don’t believe the headline but it’s TRUE. 100% true! One of newest and nicest cemeteries in the greater Sacramento valley area does not accept money. Free burial, headstone and even a 15 minute service. What’s the catch? You or your spouse have to have served in the military and been honorably discharged. That’s it. Here is a link to the cemetery.

The cemetery is an official VA (Veterans Administration) cemetery and is free to all qualifying veterans.  I have not been there yet but I understand it’s beautiful. Here is the info:

Sacramento Valley National Cemetery
5810 Midway Road
Dixon, CA 95620
Phone: (707) 693-2460
Fax: (707) 693-2479

Estate Planning and Vacation Planning

I have been on vacation for the last two weeks. I thought about blogging almost every day but I never did it. However, I feel re-charged, re-energized and ready to WORK! I am ready to blog and ready to roll! I read an interesting article last week. It suggested that the average person spends more time planning their next vacation than their retirement. I don’t know about you but I can’t honestly say I spend that much time planning my retirement. However, the same sentiment applies to our estate plans. Do you spend more time planning your next vacation than you do planning for how your kids will inherit your wealth? To me it’s a good reminder. Yes vacations are important and I look forward to each and every one of them. However, it’s MORE important that we plan for our retirement and our kid’s futures. Think about your estate plan now!

Let me know if you have any questions about California estate planning, trust or probate law.

Probate Process from Start to Finish for Paralegals

We are pleased to announce that John Palley, our lead probate attorney, has been chosen to be the lead speaker at the April 18th IPE seminar on the Probate Process from Start to Finish.  The seminar will take place at the Sheraton Grand on J Street in Sacramento. The brief outline is below. If you would like Mr. Palley’s complete outline please email us.

HOW TO FILE AN ESTATE IN PROBATE COURT 9-9:45 John Palley

Distinctions Between the Modest and Larger Estate
The Estate Timetable and What Needs to Be Done
Steps for Proving the Will
Steps for Challenging the Will

WORKING WITH EXECUTORS AND ADMINISTRATORS 9:45-10:30 John Palley

Duties of Executors or Administrators During the Probate Process
Paralegal Contact With Executors or Administrators
How Misconduct and/or Removal of Executors or Administrators is Handled
Compensation
Special Administration
Duties of the Attorney for the Executor – Who is the Client?

HOW TO PREPARE AND FILE THE INVENTORY 10:45-11:45

Preparing the Inventory – What Every Paralegal Needs to Know
Statutory Requirements
Notice
Working With the Attorney to Collect, Maintain and Manage Assets
How to Successfully Solve Common Inventory Problems

ADMINISTRATION OF THE ESTATE 12:45-1:30

Dealing With Creditors’ Claims
Disclaimers
Assisting With the Estate Cash Management
Insolvency
Preparing Partial Distributions

ETHICAL PERILS IN THE PROBATE PROCESS 1:30-2:30

Distinguishing Between Privileged and Non-Privileged Communications
When the Client Asks for Legal Advice – Knowing How to Say “No”
Protecting Your Firm From Malpractice Actions – Tools You Can Use to Meet Deadlines

DEALING WITH SPOUSE’S ELECTIVE SHARES 2:45-3:30

Homestead Allowance
Dower and Curtesy
Spousal Rights and Personalty
Rights of Election
Procedures

UNDERSTANDING THE LAWS OF INTESTACY 3:30-4
CLOSING THE ESTATE 4-4:30

Tips for Assisting With Final Accounting
Preparing the Distribution of the Estate to Beneficiaries
Discharge of the Fiduciary