Estate Auctions are the result of the passing of a loved one. These types of auctions require knowledgeable and compassionate agents/auctioneers. The information below is here to hopefully help you with this difficult and stressful time.
Although you may or may not have a will, a portion of your estate will very likely undergo a settlement process called probate. When someone files form AOC-805 with a Kentucky court and opening a case for your estate the probate process has begun. A court-appointed representative typically a family member, inventories the estate’s assets and liabilities, liquidates any necessary assets and pays your creditors. He can then distribute any remaining assets to the beneficiaries. In Kentucky, probate procedures vary slightly between county probate courts, but the process is generally the same statewide.
Protecting your loved ones with a will is extremely important.
After a death, someone, usually a member of the family or person named in the will, is required to locate the original will. Once located that person must file it with the probate court in the county where you live. Kentucky courts require the petitioner to file form AOC-805 which asks the court to admit the will to probate and appoint a personal representative, or executor, to manage the estate. This form AOC-805 includes information about the estate, such as the deceased Social Security number, date of death, and the estate and family members. The form AOC-805 can be found online at the Kentucky Courts' website. If the will has a self-proving affidavit, it can be admitted to the court without witnesses, but a will without this affidavit requires at least one of the people who witnessed the signing of the the will to testify in court. If you do not leave a will, the court uses the same form to appoint a personal representative without admitting a will.
Once the court appoints a representative, he or she must oversee the assets during the probate process. Within 60 days of this appointment, the representative must file two copies of an inventory of assets with the court, listing the estimated value of these assets at the time of death. He or she must also provide notice of the open probate case to all creditors of the estate as well as potential heirs and beneficiaries. The estate must remain open for a period of at least six months to allow creditors to make claims against the estate. All valid claims from creditors must be paid out of the estate’s assets. The personal representative’s has a duty to pay these debts, however he is not required to pay them from his own personal funds even if the estate runs out of money to pay. Your personal representative must also pay any federal and state income taxes and any estate taxes owed.
The personal representative must pay creditors, court expenses and taxes before any of the estate’s assets can be distributed to the beneficiaries. If after the estate pays all of these debts and there is nothing left than the beneficiaries will be left with nothing. The beneficiaries will not however, owe personal monies to cover any debts owed by the estate.
Some assets are exempt from the probate process. These assets can skip this process if you the proper paperwork exists to transfer them outside the probate process. For example, life insurance is a non-probate asset so the life insurance policy will be paid directly to the beneficiaries named on the policy documents without going through probate. If however, the estate listed the estate as the beneficiary then it would need to be probated. Another exemption would be if the deceased jointly owned property with someone else as “joint tenants with rights of survivorship.” If this is the case, then the property automatically passes to that co-owner upon death without going through the probate process.
Often during or shortly after the probate period is complete, the personal representative may have assets they are not sure how to liquidate. Many estates include large collections of personal property including antiques, firearms, equipment, machinery and tools as well as real estate that need to be liquidated. A real estate agent or auctioneer that has experience in this type of liquidation can be vital to your piece of mind in knowing you are getting the very best solution to the liquidation task at hand. Your initial reaction may be to simply relieve yourself of the burden as quickly as you can without thought to the value of the remaining assets. You should rely on the expertise of your agent-auctioneer to get you the best possible value for your assets at the least amount of hassle and expense to complete the sale. Often an estate auction is the best solution for the liquidation process. An auction will liquidate all assets often in a one day sale, giving you a fixed date to complete the process and move on with your life.
Courtesy of Farm & Home Realty and Auction, Inc.
334 S. Main Street
Leitchfield KY 42754