Detailed Answer
As personal representative of an estate in Oregon, you must convert personal property into cash to pay expenses, satisfy creditors, and distribute the balance fairly among heirs. Oregon law provides clear methods for selling or auctioning items, and for equalizing shares.
1. Sale Under ORS 116.163
ORS 116.163 gives a personal representative the power to sell estate personal property by public auction or private sale. You must:
- Inventory estate property under ORS 115.125.
- Obtain at least one independent appraisal for items valued over $500.
- Provide written notice of the sale date, time and place to all beneficiaries at least 10 days before the sale.
- Conduct a public auction or negotiate a private sale at fair market value.
After sale, deposit proceeds into the estate account, pay expenses and claims, then distribute net proceeds to heirs.
2. Sale With Beneficiary Consent
If all beneficiaries in a class consent in writing, you may sell specific items without court approval under ORS 116.077. This method avoids auction costs and speeds up distribution.
3. Equalizing Distributions
Once you sell property, use proceeds to reimburse estate expenses, including funeral costs, taxes and administrative fees. Then:
- Divide the remaining cash equally among heirs.
- Or, allow heirs to select items “in kind” and require equalization payments if values differ.
- Document all valuations and payments to prevent disputes.
Helpful Hints
- Obtain two or more independent appraisals for high-value items.
- Record all notices, consents, sale contracts and receipts.
- Use reputable auctioneers or online platforms with transparent bidding.
- Secure written beneficiary consents to avoid court petitions.
- Provide heirs with an accounting of receipts, expenses and distributions.
- Consult a probate attorney when sales exceed $10,000 or if disputes arise.