Losing a loved one is one of the hardest things any of us will face. In the middle of dealing with grief, you might have to figure out what to do with a family home.
Unless your loved one makes provisions for the home or other property, it will need to pass through probate. So, what happens to real estate during the Wisconsin probate? Here’s what you need to know to be prepared for the process.
Does All Real Estate Go Through Probate?
Not always. Some properties can transfer directly to a new owner without needing to go through probate at all. Some of these situations can bypass the process. For example:
- Joint ownership with rights of survivorship means the surviving owner automatically takes full ownership.
- A Transfer-on-Death (TOD) deed allows the home to pass to a named beneficiary without court involvement.
- A revocable living trust can keep the home entirely out of probate.
- A marital property agreement between spouses may also allow for a smooth transfer.
However, if your loved one did not use any of these planning tools, then any property will need to go through the probate process before anyone can sell it, move in, or inherit it.
How Real Estate Is Handled in Wisconsin Probate
If you cannot avoid probate, you need to understand what to expect. Here is the step-by-step probate process for real estate in Wisconsin:
Opening the Estate
After the death of a loved one, a close family member or the person named executor in the will needs to file paperwork with the probate court to officially open the estate. With that, the court appoints a personal representative to manage the process, including handling the real estate.
Protecting the Property
Until the home is officially transferred or sold, the personal representative keeps it safe and maintained. That might mean:
- Making sure the utilities are paid
- Paying the mortgage and property taxes
- Handling any urgent repairs
- Keeping it insured
These steps help preserve the value of the home and avoid bigger problems.
Determining the Home’s Value
Next, the property needs to be appraised. This value is used to figure out how much the estate is worth. That will play a big role when it comes time to divide things up between heirs or pay taxes and debts. This also provides a sense of what the home could sell for in today’s market.
Paying Debts and Handling Claims
Before any property can be given to heirs or beneficiaries, the estate must settle with creditors. This includes any unpaid mortgage balances, home equity loans, liens, or outstanding bills connected to the home.
If the estate does not have enough cash to pay those debts, the property might need to be sold.
Transferring or Selling the Property
Once debts are taken care of and the court gives the go-ahead, the personal representative can transfer the home to the rightful heir or sell it and divide the proceeds according to the will. In situations without a will, the property will be dispersed according to Wisconsin’s intestate laws.
If you would like to keep the house, you may be able to “buy out” the others through the estate.
What If There’s Disagreement?
Sometimes, families do not agree on what should happen to the house. If a conflict arises, the personal representative is expected to act in the estate’s best interest. When disputes cannot be resolved, the probate court may step in to make the final decision.
Get the Help You Need for Your Wisconsin Probate Issues
Now that you know what happens to real estate in Wisconsin probate, you can prepare. It can be a challenging process, but with the right legal advice, we can help you from start to finish.At Collins Law Firm, we can assist during this time. Our experienced estate planning team helps families protect their legacy. Schedule your free and confidential consultation today by contacting us or calling (414) 207-6292.