When a vested owner is deceased and there will be no probate opened, additional information needs to be collected in order for a title company to insure the sale.
Ideally, the listing broker, heirs, and the title company should have this conversation as early as possible in order to determine who would be required to execute the deed or determine if a better option would be to open probate.
| The first item the title company will require is a Lack of Probate Affidavit. This affidavit is usually competed by the surviving spouse, children, or parents of the deceased party. This will provide the title company with the information that is typically addressed and submitted in court if probate had been opened. The Affidavit asks for the following. 1. A list of all the heirs. The title company will need to know how many heirs there that will be required to execute on the forthcoming deed. 2. An estimated value of the estate. This information is necessary to determine if any inheritance tax may be due and become a potential lien on the estate. 3. Confirmation of state tax that is due. An example of this would be if the deceased received state assistance through Medicaid due to an illness or disability. This could potentially become a lien on the property. 4. A copy of the will, if there is one, to assist identifying any heirs of specific devisees of the estate 5. A copy of the death certificate for evidence of death. There is additional risk to the title company with a non-probated estate in the event an heir claims an interest in the property after a sale. This problem is avoided when an estate is probated, since the courts determines who has the authority to execute documents on behalf of the deceased party. This protects us from any post litigation or potential law suits. |